With mortgage rates still very low, housing in short supply and demand high, homebuilders remain a hot sector. And on Monday the IBD SmartSelect Composite Rating for NVR (NVR) rose from 94 to a near-best 97 the day before.
The revised score means the stock currently tops 97% of all other stocks in terms of key performance metrics and technical strength. The best stocks tend to have a 95 or better grade as they launch a significant move so be sure to keep that in mind when looking for the best stocks to buy and watch.
Other Key Ratings For NVR
Among other key ratings, Reston, Va.-based NVR boasts an A SMR Rating (sales+profit margins+return on equity), on an A to E scale with A tops.
In terms of fundamentals, in Q1, the company posted 41% earnings-per-share growth, to $63.21 per share. It has now posted accelerating EPS increases for three consecutive quarters. Revenue grew 29% to $2.05 billion, up from 18% growth the prior quarter. The company has now posted accelerating growth in each of the last three quarters.
The stock sports a 92 EPS Rating, which means its recent quarterly and annual earnings growth is outpacing 92% of all stocks.
Institutions Sitting On The Fence
Its Accumulation/Distribution Rating of C- shows a roughly equal amount of buying and selling by institutional investors over the last 13 weeks.
NVR earns the No. 7 rank among its peers in the Building-Residential/Commercial industry group. Century Communities (CCS), LGI Homes (LGIH) and D.R. Horton (DHI) are among the top 5 highly-rated stocks within the group.
NVR has now climbed above a proper buy zone after breaking out from a 4,530.10 entry in a flat base. See if it can form a new base such as a three weeks tight, or rebound off of its 50-day or 10-week line. It closed at 4871.49 Monday, just above its 50-day
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