Homebuilder NVR's (NVR) stock rose to its highest point ever Wednesday, quite an accomplishment in the current volatile market. As a result, NVR stock's Relative Strength (RS) Rating on Thursday rose to 87 of a best-possible 99. And it's currently in buy range.
XThe 87 RS Rating means NVR stock is outperforming 87% of all stocks, regardless of industry. It's a significant change because research shows that the stocks that go on to make their largest gains often have an RS Rating above 80 as they launch their biggest price moves.
NVR Stock's Other Ratings Shine
NVR builds single-family homes, condos and townhomes in 14 states and Washington, D.C. Among other key ratings, the Reston, Va.-based homebuilder carries a strong 95 EPS Rating, reflecting steady double-digit profit growth. Similarly, the 95 Composite Rating for NVR stock confirms it's among the market leaders.
The Composite Rating combines five separate proprietary IBD ratings, based on key fundamental and technical criteria, into one easy-to-use score. The best growth stocks have a Composite Rating of 90 or better.
One yellow flag is NVR stock's C- Accumulation/Distribution Rating, on an A+ to E scale. The rating shows that institutional investors are selling slightly more than buying its stock. See if this rating improves to C or better. Heavy buying by funds, insurers and other big investors is a bullish sign.
NVR posted 33% earnings growth on a year-over-year basis in the latest quarterly report, to $86.44 per share. The prior three stanzas its EPS rose 19%, 41% and 94%. Revenue grew 20% to $2.4 billion. The company has posted double-digit gains for both sales and profits for at least the last four quarters.
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NVR is still in a buying range after breaking past a 5,295.10 entry in a cup with handle. The proper buying range is up to 5% above the initial entry. Once a stock hits that benchmark, it's best to hold off investing and wait for it to set up another buying opportunity.
NVR stock was up 1.6% Thursday afternoon, to 5,489.01. It's more than doubled from a Covid-crash low 2043.01 in late March 2020.
Peers In Builders Group
The company holds the No. 3 rank among its peers in the Building-Residential/Commercial industry group. TRI Pointe Homes (TPH) and Green Brick Partners (GRBK) are also among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, be sure to pay attention to relative price strength.
IBD's unique rating measures price action with a 1 (worst) to 99 (best) score. The grade shows how a stock's price performance over the trailing 52 weeks compares to all the other stocks in our database.
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