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Reston, Virginia-based NVR, Inc. (NVR) is a U.S. homebuilder valued at a market cap of around $28.3 billion. The company builds and sells homes under the Ryan Homes, NVHomes, and Heartland Homes brands, while also providing mortgage and title services.
Shares of NVR have significantly outshone the broader market over the past 52 weeks. NVR has soared 51.2% over this time frame, while the broader S&P 500 Index ($SPX) has gained 32.6%. In 2024, shares of NVR are up 31.9%, compared to SPX’s 26.5% gain on a YTD basis.
Zooming in further, NVR has easily surpassed the iShares U.S. Home Construction ETF’s (ITB) 28.3% gain over the past 52 weeks and 3.4% rise on a YTD basis.
On Oct. 22, NVR shares plunged 2.3% after the company posted its Q3 earnings. It reported earnings of $130.50 per share, missing analysts' expectations of $132.08 per share. However, revenue of $2.68 billion exceeded the forecasted $2.66 billion.
For the current fiscal year, ending in December, analysts expect NVR’s EPS to rise 6.7% year over year to $494.48. However, the company’s earnings surprise history is mixed. It beat the consensus estimates in two of the last four quarters, while missing on two other occasions.
Among the seven analysts covering the stock, the consensus rating is a “Hold.” That’s based on one “Strong Buy” rating, five “Holds,” and one “Strong Sell.
This configuration is less bullish than a month ago when two analysts gave the stock a “Strong Buy.”
On Oct. 24, UBS Group AG (UBS) raised its price target for NVR from $8,450 to $9,450. The firm maintains a “Neutral” rating on the construction company's stock.
NVR’s mean price target of $9,390 represents a potential upside of 1.7% from prevailing price levels. Its Street-high price target of $9,820 implies an impressive potential upside of 6.3% from the current price.
