Why NVR Dipped More Than Broader Market Today

NVR (NVR) closed last trading day at $7,871.15, down 0.46%. The stock fell less than the S&P 500's 0.04% daily loss. The Dow fell 0.03% and the tech-heavy Nasdaq rose 0.03%.  

Homebuilder shares have risen 3.3% in the preceding month before today's trade. This underperformed the Construction sector's 4.37% rise and exceeded the S&P 500's 2.57% gain.  

Investors will eagerly watch NVR's future financial reports. That day, NVR is expected to post $104.76 per share earnings, up 4.88% year-over-year. The Zacks Consensus Estimate for revenue is $2.19 billion, up 2.67% from the year-ago period.  

The Zacks Consensus Estimates predict $484.65 per share and $10.04 billion in revenue for the entire year, up 4.61% and 7.73% from the previous year.  

Investors should also monitor NVR analyst forecast changes. These adjustments reflect short-term business patterns that alter often. In light of this, positive estimate revisions indicate optimism about the company's business forecast.

Our research reveals that estimate modifications directly affect near-term stock prices. The Zacks Rank, our proprietary technology, incorporates estimate changes and delivers a functioning grading system.  

Zacks Ranks are #1 (Strong Buy) to #5 (Strong Sell). Since 1988, #1 stocks have returned +25% year, according to outside audits. Over the past month, the Zacks Consensus EPS projection rose 0.04%. NVR has a #2 Zacks Rank (Buy). NVR's 16.32 Forward P/E ratio should also be considered by investors. This is higher than the industry average Forward P/E of 9.87.  

Note that NVR has a 2.96 PEG ratio. PEG ratios are similar to P/E ratios but include the company's expected earnings growth rate. At yesterday's close, NVR's industry averaged 0.91 PEG. Building Products - Home Builders is a Construction industry. The Zacks Industry Rank of 43 places this industry in the top 18% of 250+ industries.  

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