에 대한 최신 뉴스 NVR (NYSE:NVR) 주식

NVR Inc is a United States-based homebuilding company. It builds single-family detached homes, townhomes, and condominium buildings under three brands, Ryan Homes, NVHomes, and Heartland Homes. The company through its subsidiary also operates a mortgage banking and title services business. The homebuilding segment includes four geographic areas of the United States; Mid-Atlantic, North East, Mid-East, and South East.

NVR Inc

Enviri Corp

Nevro Corp

NOVRA TECH INC ORD by Novra Technologies Inc

Novra Technologies Inc

WIIM

BLDR

IESC

Shares of homebuilders, construction and household durables stocks are trading lower amid overall market weakness following the Fed's rate decision to cut rates by 25 basis points.

JP Morgan analyst Michael Rehaut maintains NVR (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NVR#NYSE">NVR</a>) with a Neutral and lowers the price target from $9820 to $9245.

News

Price Target

Analyst Ratings

JP Morgan Maintains Neutral on NVR, Lowers Price Target to $9245

Shares of homebuilders are trading lower. Weakness may be in reaction to worse-than-expected November PPI data, which could cloud rate cut outlook.

NVR, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NVR#NYSE">NVR</a>) announced today that its Board of Directors has authorized the repurchase of up to an aggregate of $750 million of its outstanding common stock.&nbsp; The repurchase authorization does not have an expiration date. The purchases will occur from time to time in the open market and/or in privately negotiated transactions as market conditions permit.&nbsp; The Company indicated that the authorization is a continuation of the stock repurchase program that began in 1994 and is consistent with NVR's strategy of maximizing shareholder value.&nbsp; Consistent with prior authorizations, this new authorization prohibits the Company from purchasing shares from the Company's officers, directors, Profit Sharing/401(k) Plan Trust or Employee Stock Ownership Plan Trust.&nbsp; As of December 10, 2024, NVR had 3,039,944 total shares of common stock outstanding.

Buybacks

NVR Announces Share Repurchase Authorization Of Up To $750M Of Its Outstanding Common Stock

TMHC

Shares of homebuilders and housing-linked stocks are trading higher amid a drop in yields.

Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades and downgrades, please see our <a href="https://www.benzinga.com/analyst-stock-ratings">analyst ratings page</a>.
<ul>
<li><a href="https://www.benzinga.com/analyst-stock-ratings/analyst/587f78d077f9dd000126ef0f/john-difucci">Guggenheim analyst John Difucci</a> downgraded the rating for Smartsheet Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SMAR#NYSE">SMAR</a>) from Buy to Neutral. Smartsheet shares closed at $56.02 on Friday. <a href="https://www.benzinga.com/quote/MSFT/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>JMP Securities analyst Constantine Davides downgraded the rating for agilon health, inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AGL#NYSE">AGL</a>) from Market Outperform to Market Perform. Agilon Health shares closed at $1.84 on Friday. <a href="https://www.benzinga.com/quote/MSFT/analyst-ratings">See how other analysts view this stock</a>.</li>
<li><a href="https://www.benzinga.com/analyst-stock-ratings/analyst/5abbc11ab0230000019a9b76/john-mcnulty">BMO Capital analyst John McNulty</a> downgraded Celanese Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CE#NYSE">CE</a>) from Market Perform to Underperform and lowered the price target from $138 to $76. Celanese shares closed at $84.80 on Friday. <a href="https://www.benzinga.com/quote/MSFT/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Seaport Global analyst Kenneth Zener downgraded the rating for NVR, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NVR#NYSE">NVR</a>) from Buy to Neutral. NVR shares closed at $9,306.94 on Friday. <a href="https://www.benzinga.com/quote/MSFT/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Raymond James analyst James Rollyson downgraded Tidewater Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TDW#NYSE">TDW</a>) from Strong Buy to Outperform and slashed the price target from $131 to $102. Tidewater shares closed at $56.07 on Friday. <a href="https://www.benzinga.com/quote/MSFT/analyst-ratings">See how other analysts view this stock.</a></li>
</ul>
Considering buying CE stock? Here&#8217;s what analysts think:
<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="1024" height="546" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/11071418/image-108-1024x546.png" alt="" class="wp-image-640254" style="width:508px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/11071418/image-108-1024x546.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/11071418/image-108-300x160.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/11071418/image-108-768x409.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/11071418/image-108.png 1242w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
Read More: 
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<li><a href="https://www.benzinga.com/news/earnings/24/11/41871463/dow-sp-500-notch-best-week-of-year-as-tesla-surges-post-trump-win-investor-sentiment-improves-fear-greed-index-remains-in-neutral-zone">Dow, S&amp;P 500 Notch Best Week Of Year As Tesla Surges Post Trump Win: Investor Sentiment Improves, Fear &amp; Greed Index Remains In &#8216;Neutral&#8217; Zone</a></li>
</ul>

Downgrades

Pre-Market Outlook

Markets

Trading Ideas

SMAR

This Celanese Analyst Turns Bearish; Here Are Top 5 Downgrades For Monday

Seaport Global analyst Kenneth Zener downgrades NVR (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NVR#NYSE">NVR</a>) from Buy to Neutral.

Seaport Global Downgrades NVR to Neutral

Macro Economic Events

Macro Notification

Econ #s

Economics

General

MDCE

USA Pending Home Sales (MoM) For September 7.4% Vs 1.9% Est.; 0.6% Prior

Shares of homebuilders and housing-related stocks are trading lower in possible sympathy with D.R. Horton, which reported worse-than-expected Q4 EPS and sales.

B of A Securities analyst Rafe Jadrosich maintains NVR (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NVR#NYSE">NVR</a>) with a Buy and lowers the price target from $10800 to $10600.

B of A Securities Maintains Buy on NVR, Lowers Price Target to $10600

UBS analyst John Lovallo maintains NVR (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NVR#NYSE">NVR</a>) with a Neutral and raises the price target from $8450 to $9450.

UBS Maintains Neutral on NVR, Raises Price Target to $9450

NVR shares are trading lower following a Q3 EPS miss.

NVR (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NVR#NYSE">NVR</a>) reported quarterly earnings of $130.50 per share which missed the analyst consensus estimate of $131.00 by 0.38 percent. This is a 4.18 percent increase over earnings of $125.26 per share from the same period last year.

Earnings

NVR Q3 EPS $130.50 Misses $131.00 Estimate

GRBK

LGIH

LOVE

LSEA

ROCK

Shares of housing-related stocks are trading higher after the Fed policy decision to cut rates by 50 basis points, which could help curb housing unaffordability and increase demand.

New construction on single-family homes in the U.S. <a href="https://www.benzinga.com/news/23/06/32926608/us-housing-starts-skyrocket-to-highest-level-since-2016-sign-of-strong-market-optimism-among-builder">jumped in August</a> as mortgage rates trend downward and the Federal Reserve is expected to cut rates on Wednesday for the first time in four years.
Single-family housing starts last month came in at an annualized rate of 992,000 units, up 15.8% from a revised figure of 857,000 for July, according to Commerce Department data released on Wednesday.
Starts for all privately-owned housing in August totaled an annualized rate of 1.356 million units, up 9.6% from the July revised estimate of 1.237 million and up 3.9% from the August 2023 rate of 1.305 million.
Single-family housing completions reached an annualized rate of 1.029 million in August, registering a 5.6% decline from July&#8217;s revised rate of 1.09 million.
Completions for all privately-owned homes in August were at a seasonally adjusted annual rate of 1.788 million, up 9.2% from the July revised estimate of 1.637 million and 30.2% above the July 2023 rate of 1.373 million.
Read Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37845734/housing-starts-rebound-lift-homebuilder-stocks-sign-of-economic-resilience">Housing Starts Rebound, Lift Homebuilder Stocks: Sign Of Economic Resilience</a>
Building permits also rose last month, Commerce Department data showed.
Single-family authorizations in August were at a rate of 967,000, up 2.8% from the revised July figure of 941,000.
Privately-owned housing units authorized by building permits in August were at a seasonally adjusted annual rate of 1,475,000. That&#8217;s up 4.9% from the July revised rate of 1.406 million but below the August 2023 rate of 1.578 million.
The average rate for <a href="https://www.benzinga.com/news/24/09/40921345/mortgage-rates-drop-to-2-year-low-refinancing-hits-fastest-pace-since-2022-rocket-lendingtree-among">30-year mortgages</a> fell 14 basis points in the week ended Sept. 13 to 6.15%, marking the lowest rate since September 2022, according to the Mortgage Bankers Association.
The Federal Reserve is <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40921827/fed-decision-is-here-5-things-investors-need-to-know-ahead-of-wednesdays-pivotal-in">expected to lower</a> its key interest rate ranging from 5% to 5.25% on Wednesday by either 25 or 50 basis points, signifying its first rate decline in four years.
Price Action: Homebuilders slid into Wednesday&#8217;s mid-day trading.
<ul>
<li>D.R. Horton, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DHI#NYSE">DHI</a>) slipped 0.86% to $193.67 </li>
<li>Pulte Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PHM#NYSE">PHM</a>) declined 0.41% to $139.88</li>
<li>NVR, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NVR#NYSE">NVR</a>) went down 0.34% to $9,542.99</li>
</ul>
Exchange-traded funds that hold homebuilder stocks showed gains and losses.
<ul>
<li>IShares U.S. Home Construction ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITB#BATS">ITB</a>) declined 0.57%</li>
<li>Direxion Daily Homebuilders &amp; Supplies Bull 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NAIL#NYSE">NAIL</a>) fell 1.8%</li>
<li>Pacer US Cash Cows Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BUL#NYSE">BUL</a>) gained 0.2%</li>
</ul>
Read Now:
<ul>
<li>&#8216;<a href="https://www.benzinga.com/real-estate/24/08/40666981/the-time-has-come-to-adjust-cheaper-mortgage-rates-could-be-just-weeks-away-but-it-all-hinges-on-thi">The Time Has Come to Adjust&#8217; — Cheaper Mortgage Rates Could Be Just Weeks Away, But It All Hinges On This Data</a></li>
</ul>
Image: Shutterstock

Federal Reserve

ETFs

Real Estate

iShares Dow Jones US Homenstruction Index Fund

NAIL

Single-Family Housing Starts Are Up As Mortgage Rates Decline, Fed Eyes Lower Rates

Prospective homebuyers are holding off on<a href="https://www.benzinga.com/real-estate/24/06/39465243/u-s-home-sales-decline-for-third-month-as-record-prices-pose-persistent-affordability-challenges-dur"> buying new homes</a> as they bet on mortgage rates falling further, causing slow home sales, according to builders.
And why wouldn&#8217;t they wait?
In the week ending Aug. 23, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of $766,550 slipped from <a href="https://finance.yahoo.com/news/mortgage-rates-hit-17-month-200029576.html?fr=yhssrp_catchall">6.5% to 6.44%</a>. This marks the lowest level since April 2023 and the fourth consecutive week of rate declines, according to the Mortgage Bankers Association (MBA).
Read Also: <a href="https://www.benzinga.com/real-estate/24/08/40629862/where-billionaires-are-snapping-up-homes-in-2024-hint-no-fear-of-climate-disasters">Where Billionaires Are Snapping Up Homes In 2024 — Hint, No Fear Of Climate Disasters</a>
&#8220;As observed in recent weeks, despite lower rates, purchase applications have not moved much,&#8221; said Joel Kan, MBA's vice president and deputy chief economist. 
&#8220;Prospective homebuyers are staying patient now that rates are moving lower and for-sale inventory has started to increase.&#8221; 
Mortgage applications saw a modest increase of 0.5% from the previous week, according to the Mortgage Bankers Association's (MBA) Weekly Applications Survey.
Refinancing activity showed a slight decline. The Refinance Index fell by 0.1% from the prior week, though it remains 85% higher than the same week last year, reflecting a robust annual surge in homeowners looking to take advantage of the lower rates.
Adjustable-rate mortgages (ARMs) also saw a decrease in interest rates. The average contract interest rate for 5/1 ARMs fell to 5.98% from 6.25%, indicating some relief for borrowers seeking more flexible loan terms.
Existing home sales increased for the first time in five months as falling mortgage rates have convinced prospective buyers to take out loans. However, sales are still slow as homeowners with mortgage rates around 3% wait for rates to fall even further, according to the National Association of Home Builders (NAHB).
Total existing-home sales rose 1.3% to a seasonally adjusted annual rate of 3.95 million in July. This marks the first increase after four months of declines. On a year-over-year basis, sales were still 2.5% lower than a year ago.
&#8220;Despite these changes, sales remained sluggish and low inventory continued to push up median home prices,&#8221; the NAHB said on Monday.
Homeowners with lower mortgage rates have opted to stay put, avoiding trading existing mortgages for new ones with higher rates.
This &#8220;lock-in&#8221; trend is causing home prices to rise and holding back inventory, but this trend should reverse as mortgage rates keep declining, the NAHB said.
&#8220;Mortgage rates are expected to continue to decrease gradually, leading to increased demand (and unlocking more of the lock-in inventory) in the coming quarters,&#8221; it said.
Price Action: Mortgage companies moved modestly on Wall Street into Thursday&#8217;s mid-afternoon trading.
<ul>
<li>UWM Holdings Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UWMC#NYSE">UWMC</a>) declined 0.93% to $9.07</li>
<li>Rocket Companies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RKT#NYSE">RKT</a>), parent company of Rocket Mortgage, fell 1.79% to $19.21</li>
<li>Bank of America Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>) went up 0.45% to $40.13</li>
</ul>
Home builders also moved little on Thursday.
<ul>
<li>D.R. Horton Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DHI#NYSE">DHI</a>) fell 0.09% to $187.41</li>
<li>Lennar Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LEN#NYSE">LEN</a>) gained 0.55% to $168.01</li>
<li>NVR, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NVR#NYSE">NVR</a>) ticked up 0.22% to $9,049.14</li>
</ul>
Read Now:
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<li><a href="https://www.benzinga.com/real-estate/24/08/40485633/kamala-harris-3-million-homes-promise-everything-else-wont-work-unless-we-have-more-supply-says-chie">Kamala Harris&#8217; 3 Million Homes Promise: &#8216;Everything Else Won&#8217;t Work Unless We Have More Supply,&#8217; Says Chief Economist</a></li>
</ul>
Image: Midjourney

UWMC

Homebuyers Turn Screws On Builders As Mortgage Rates Are Telegraphed To Fall

CVCO

Shares of household durable companies are trading higher following strong New Home Sales economic data for July. Also, the sector may be moving in sympathy with the market after Fed Chair Powell offered an optimistic U.S. economic outlook and indicated future rate cuts.

Shares of homebuilders are trading higher in sympathy with Toll Brothers, which reported better-than-expected Q3 financial results and issued guidance above estimates.

Toll Brothers, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/tol#NYSE">TOL</a>) is scheduled to report third-quarter fiscal 2024&nbsp; (ended Jul 31, 2024) results on Aug 20, after the closing bell.
In the last reported quarter, the company&#39;s earnings missed the Zacks Consensus Estimate by 18.2%, but revenues beat the mark by 12.6%. Earnings and revenues increased 18.6% and 13.2% from the prior-year period, respectively.
On an encouraging note, earnings topped analysts&#39; expectations in three of the trailing four quarters and missed on another occasion, the average surprise being 12.9%.
<h3>Trend in Estimate Revision</h3>
The Zacks Consensus Estimate for the fiscal third-quarter earnings per share increased to $3.28 from $3.25 over the past 60 days. The said figure indicates a 12.1% decline from the year-ago EPS of $3.73.
The consensus mark for revenues is pegged at $2.7 billion, indicating 0.3% year-over-year growth.
<div class="chart_embed">
<h3>Toll Brothers Inc. Price and EPS Surprise</h3>
<img alt="Toll Brothers Inc. Price and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/6e/1723708230.png" style="height:294px; width:610px" title="" />
Toll Brothers Inc. price-eps-surprise | Toll Brothers Inc. Quote
</div>
<h3>Factors to Note</h3>
Toll Brothers&#39; fiscal third-quarter home sales are expected to have increased slightly from the year-ago reported level, given higher deliveries. Although higher mortgage rates will impact the volumes to some extent, low-existing homes for sale have been driving demand for new homes in the market. This tailwind is likely to have helped the company drive growth.
This apart, its focus on luxury move-up buyers, who already possess a residence and are looking to shift to larger and better homes, will somewhat contribute to the revenues. Toll Brothers has been enjoying greater pricing power than other homebuilding companies, as luxury homebuyers are less sensitive to price changes. The company has also been benefiting from the strategy of broadening its product lines, price points and geographies, along with spec sales.
On the fiscal second-quarter earnings call, TOL stated that it expects higher home deliveries within 2,750-2,850 units from 2,524 units delivered in the prior-year quarter (considering the midpoint) at an average price of $950,000-$960,000 (suggesting a decline from $1,059,100 a year ago).
Higher land, labor and raw material costs, along with high incentives, are expected to put pressure on the fiscal third-quarter margins. Toll Brothers expects the adjusted home sales gross margin to be 27.7%, implying a decrease from 29.3% reported in the year-ago period. SG&amp;A expenses are estimated to be 9.2% of home sales revenues, indicating a rise from 8.6% reported in the year-ago period. The company expects the effective tax rate to be 26%. 
Our Estimates 
Our model predicts home sales revenues to decline 0.7% year over year to $2.66 billion due to a lower ASP projection of $955,300 (down 9.9% year over year). We expect deliveries to grow 10.1% year over year to 2,779 units in the quarter.
We expect net signed contracts to be around 2,904 units, indicating an improvement of 29.3% from the prior-year reported figure.
Our model predicts a backlog of 7,217 units, indicating a decline of 1.1% from the year-ago period. The same for the backlog (in values) is pegged at $7.57 billion, implying a decline of 3.9% from the $7.87 million recorded at the third quarter of fiscal 2023-end.
<h3>What Our Quantitative Model Predicts</h3>
Our proven model does not conclusively predict an earnings beat for Toll Brothers this time around. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, this is not the case here, as you will see below.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%. You can uncover the best stocks to buy or sell before they&#39;re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
<h3>Peer Releases</h3>
Meritage Homes Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mth#NYSE">MTH</a>) reported impressive second-quarter 2024 results, wherein the earnings and total closing revenues topped the Zacks Consensus Estimate and grew year over year.
MTH&#39;s quarterly results were backed by resilient housing demand and the company&#39;s progress in delivering quick-turning and affordable move-in-ready homes. Meritage Homes now expects 14,750-15,500 home closings for the year, up from the prior expected range of 14,500-15,000. The closings are now likely to generate revenues between $6.1 billion and $6.3 billion, up from the priorly expected range of $6-$6.2 billion.
NVR, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nvr#NYSE">NVR</a>) reported mixed second-quarter 2024 results, with earnings missing the Zacks Consensus Estimate while Homebuilding revenues surpassed the same. On the other hand, both metrics increased on a year-over-year basis.
The upside was backed by improved demand trends, which resulted in higher settlements. Although the cancelation rate increased during the second quarter, growth in new orders and increased ASP of new orders are encouraging for the company&#39;s prospects. Settlements in the quarter were up 11% year over year to 5,659 units. New orders increased 3% from the prior-year quarter&#39;s level to 6,067 units. On a unit basis, backlog at the end of Jun 30, 2024, improved 3% from the prior-year quarter&#39;s figure to 11,597 homes and 6% on a dollar basis to $5.45 billion.
PulteGroup Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/phm#NYSE">PHM</a>) reported stellar results in the second quarter of 2024, wherein earnings and revenues handily beat the Zacks Consensus Estimate. On a year-over-year basis, both the bottom and top lines increased.
PHM saw significant benefits from key factors that drove its success. The company&#39;s balanced operating model resulted in increases in closings, average sales price and gross margin, which collectively led to a 19.3% increase in EPS. Effective management of sales price, pace and starts on a community-by-community basis enabled the company to achieve high returns on invested capital and equity, evidenced by a 27.1% return on equity over the past 12 months.
<a href="https://www.zacks.com/stock/news/2322401/toll-brothers-tol-to-post-q3-earnings-what-s-in-the-cards?cid=CS-BENZ-FT-analyst_blog|earnings_preview-2322401">To read this article on Zacks.com click here.</a>

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Toll Brothers' to Post Q3 Earnings: What's in the Cards?

GRMN

KOSS

NVFY

YHGJ

Shares of household durable companies are trading lower amid overall market weakness on US economic concerns.

NVR (NVR) is a leading homebuilding company that stands to capitalize on current market trends. While the company's long-term growth appears rosy with rising demand and easing mortgages, it grapples with elevated valuation, economic uncertainties, and mixed financial results. So, let's analyze whether you should invest in this stock for now? Read more to find out... NVR, Inc. (<a href="https://stocknews.com/stock/NVR/">NVR</a>) is one of the largest homebuilding and mortgage banking companies in the U.S. It operates through its Homebuilding and Mortgage Banking segments. The company engages in the construction and sale of single-family detached homes, townhomes, and condominium buildings under names like Ryan Homes, NVHomes, and Heartland Homes.
In the third quarter of 2024, NVR's new orders increased to 5,650 units, as compared to 4,746 units in the third quarter of 2023, indicating increase of 19%. The average sales price of new orders in the third quarter came in at $450,700. Settlements in the third quarter also saw growth of 5% to 5,908 units versus 5,606 units during the third quarter of 2023.
Although the interest rates are still at high levels, the recent Federal Reserve interest rate cuts have offered a sigh of relief and are contributing to <a href="https://www.reuters.com/markets/us/us-home-builder-confidence-rises-second-straight-month-2024-10-17/">mortgage banking growth</a>. The larger-than-usual half-percentage point cut will likely put a pause on the slowdown in the housing market.
Further, in September, the U.S. single-family homebuilding surged to a five-month high of 2.7%, whereas building permits for future construction for <a href="https://www.reuters.com/markets/us/us-single-family-homebuilding-rises-five-month-high-2024-10-18/">single-family housing</a> was up 0.3%. Besides, the Fed rate cut led to a drop in the mortgage rate, and the promise of more rate cuts could also encourage new construction projects and purchases in the future.
Therefore, amid these trends, the prospects of NVR in the upcoming periods are promising, with lower borrowing costs attracting consumers to purchase houses and new construction. Also, the rapidly growing population and strong economic growth are leading to tight inventory, offering growth opportunities for the company.
Shares of NVR have gained 21.6% over the past six months and 45.9% over the past year to close its last trading session at $9,179.61. However, over the past month, the stock has plunged 4.4%.
Let's look at factors that could influence NVR's performance in the upcoming months.
Recent Developments
On April 25, 2024, NVR announced the signing of an agreement with La Cité Development, a leading real estate development corporation, to address much-needed housing solutions by adding 180 units of single-family homes to a large-scale redevelopment of 32.94 acres in Poppleton, West Baltimore, for around $800 million.
This mixed-income development, representing an investment of $60 million, will consist of 48 condo units and 132 townhomes on seven acres.
Mixed Financials
During the third quarter that ended September 30, 2024, NVR reported Homebuilding revenues of $2.68 billion, up 6.6% from the prior year's quarter, and its Homebuilding operating income grew 0.6% from the year-ago value to $510.52 million. However, its Mortgage banking fees were down 2.3% year-over-year to $55.31 million.
Furthermore, the company's homebuilding operating income just grew marginally from the year-ago value to $510.52 million. Also, NVR's net income and EPS totaled $429.32 million and $130.50, indicating slight decreases from the prior-year quarter, respectively.
As of September 30, 2024, NVR's cash and cash equivalents and total assets came in at $2.47 billion and $6.49 billion, respectively.
Favorable Analyst Estimates
Analysts expect NVR's revenue for the fourth quarter (ending December 2024) to come in at $2.79 billion, indicating an increase of 16.7% year-over-year. The consensus EPS estimate of $130.83 for the same period reflects a 7.6% year-over-year improvement.
For the fiscal year (ending December 2024), the company's revenue and EPS are anticipated to grow 11% and 6.3% year-over-year to $10.34 billion and $492.26, respectively. In addition, Street expects its revenue and EPS for the fiscal year 2025 to grow 6.4% and 7.1% from the prior year to $11 billion and $527.38, respectively.
Robust Profitability
NVR's trailing-12-month net income margin of 15.90% is 257.8% higher than the 4.44% industry average. Its trailing-12-month EBIT margin of 19.98% is 148.4% higher than the industry average of 8.04%. And the stock's trailing-12-month Levered FCF margin of 9.82% is considerably higher than the industry average of 4.83%.
Furthermore, the stock's <a href="https://www.investopedia.com/terms/r/roce.asp">ROCE</a>, ROTC, and ROTA of 38.72%, 24.40%, and 25.19% are favorable compared to the 10.91%, 6.14%, and 3.97% industry average, respectively.
Elevated Valuation
In terms of forward non-GAAP P/E, NVR is currently trading at 18.65x, 7.4% higher than the industry average of 17.37x. Also, the stock's forward EV/Sales and Price/Sales of 2.58x and 2.72x are considerably higher than the industry average of 1.28x and 0.96x, respectively.
Additionally, the stock's forward EV/EBITDA and Price/Cash Flow of 13.25x and 19.57x are 26.3% and 69.4% higher than the industry averages of 10.49x and 11.56x, respectively.
POWR Ratings Reflect Uncertainty
NVR's mixed fundamentals are reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. The stock has an overall rating of C, translating to a Neutral in our proprietary system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
Our proprietary rating system also evaluates each stock based on eight distinct categories. NVR has an A grade for Quality, consistent with its higher-than-industry profitability.
However, it has a D grade for Value, justified by higher-than-industry valuation.
NVR is ranked #9 among the 22 stocks in the <a href="https://stocknews.com/category/homebuilders/">Homebuilders</a> industry.
Beyond what I have stated above, we have also given NVR grades for Stability, Momentum, Growth, and Sentiment. Get access to all the NVR ratings <a href="https://stocknews.com/stock/NVR/">here</a>.
Bottom Line
NVR reported its earnings for the third quarter of 2024, showcasing robust revenue growth for the period. Also, the company's long-term prospects appear robust, driven by a strong geographic market presence and wide scope of market expansion amid mortgage banking growth.
Despite solid revenue growth, NVR grapples with high SG&amp;A expenses and lower net income. Moreover, as the company continues to expand its operations, it encounters hurdles related to economic uncertainties and increased cancellation rates.
Given NVR's elevated valuation and mixed financial performance, waiting for a better entry point in this stock seems prudent.
Stocks to Consider Instead of NVR Inc. (NVR)
Given its near-term uncertain prospects, the odds of NVR outperforming in the weeks and months ahead are compromised. However, there are many industry peers with much more impressive POWR Ratings. So, consider these A (Strong Buy) or B (Buy) stocks from the <a href="https://stocknews.com/category/homebuilders/">Homebuilders</a> industry instead:
Skanska AB (<a href="https://stocknews.com/stock/SKBSY/">SKBSY</a>)
Sekisui House Ltd. ADR (<a href="https://stocknews.com/stock/SKHSY/">SKHSY</a>)
Taylor Morrison Home Corporation (<a href="https://stocknews.com/stock/TMHC/">TMHC</a>)
For exploring more A and B-rated homebuilders stocks, <a href="https://stocknews.com/category/homebuilders/">click here</a>.
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<hr />
NVR shares were unchanged in after-hours trading Friday. Year-to-date, NVR has gained 28.93%, versus a 24.40% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Rjkumari Saxena</h2> <img src='https:/wp-content/uploads/2024/04/Rajkumari-Saxena_Image-1.jpeg' style="float:left; padding:5px;width:125px;">Rajkumari started her career as a writer but gradually shifted her focus to financial journalism, leveraging her educational background in Commerce. Fascinated by the interplay of business and economic shifts in equities, she aspires to evolve as an analyst. With a knack for simplifying complex financial concepts, her mission is to empower investors with insights that lead to profitable decisions.<a href="https://stocknews.com/authors/?author=rajkumari-saxena">More...</a>The post <a href=https://stocknews.com/news/nvr-skbsy-skhsy-tmhc-is-nvr-a-hidden-gem-in-the-housing-market/>Is NVR a Hidden Gem in the Housing Market?</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

Is NVR a Hidden Gem in the Housing Market?

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NVR (NVR) announced that its Board of Directors has authorized the repurchase of up to an aggregate of $750M of its outstanding common stock. The r...

NVR announces $750M share repurchase program

JPMorgan analyst Michael Rehaut lowered the firm's price target on NVR (NVR) to $9,245 from $9,820 and keeps a Neutral rating on the shares. After ...

NVR price target lowered to $9,245 from $9,820 at JPMorgan

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Press Releases

NVR, INC. ANNOUNCES FOURTH QUARTER AND FULL YEAR RESULTS

NVR, INC. ANNOUNCES SHARE REPURCHASE AUTHORIZATION

United Homes Group Announces Board of Directors Update

NVR, INC. ANNOUNCES FIRST QUARTER RESULTS

La Cité Development Signs Agreement with NVR Ryan Homes for Large-Scale Single-Family Home Ownership Development in West Baltimore

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