NVR Stock News

What's the market impact of the big Fed rate cut? The Investing with IBD podcast covers two stocks offer perspective for what's ahead.

NVR is well-positioned to benefit from high but declining mortgage rates and low housing supply, making it a strong "Buy" despite its higher valuation. Declining but high mortgage rates are expected to boost buyer demand, benefiting NVR as homeowners remain locked into lower rates. With favorable macroeconomic conditions, NVR is likely to continue its strong performance in the medium term.

NVR shares have surged 29% year to date, as investor sentiment on the company and homebuilding sector more broadly has shifted. Despite strong performance in the latest quarter, the current valuation appears less attractive due to a slowing housing market and high mortgage rates. NVR's Q2'24 revenue grew 11.6% YoY, with strong new orders and a solid balance sheet, but margins slightly decreased.

Buffett owns two similar stocks -- Lennar and NVR. Shares of both homebuilders should soar if the Fed cuts interest rates.

RESTON, Va. , July 23, 2024 /PRNewswire/ -- NVR, Inc. (NYSE: NVR), one of the nation's largest homebuilding and mortgage banking companies, announced net income for its second quarter ended June 30, 2024 of $400.9 million, or $120.69 per diluted share.

Capital One is one of the few bank stocks left in Berkshire's portfolio, and it trades below book value. NVR has been a beneficiary of a strong environment for homebuilders and could be a big winner as the housing market normalizes.

Stock splits are all the rage this year. In the last month alone, there's been a 10-for-1 stock split by Nvidia (NASDAQ: NVDA ) and a 50-for-1 split by Chipotle Mexican Grill (NYSE: CMG ), one of the biggest events in the history of the New York Stock Exchange.

Home builder stocks were rallying across the board on Thursday, after government data showed U.S. consumer prices falling for the first time in more than four years, boosting hopes the Federal Reserve may soon start to lower interest rates.