NVR Inc. (NVR): Today's Highlighted Laggard In Materials & Construction

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

NVR ( NVR) pushed the Materials & Construction industry lower today making it today's featured Materials & Construction laggard. The industry as a whole closed the day up 0.7%. By the end of trading, NVR fell $15.11 (-1.4%) to $1038 on average volume. Throughout the day, 48,578 shares of NVR exchanged hands as compared to its average daily volume of 32,700 shares. The stock ranged in price between $1036-$1054 after having opened the day at $1053.25 as compared to the previous trading day's close of $1053.11. Other companies within the Materials & Construction industry that declined today were: Real Goods Solar ( RSOL), down 6.6%, Vertex Energy ( VTNR), down 6.1%, China Advanced Construction Materials Group ( CADC), down 5.8%, and MagneGas Corporation ( MNGA), down 4.3%.
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NVR, Inc. operates as a homebuilder in the United States. The company engages in the construction and sale of single-family detached homes, townhomes, and condominium buildings under the trade names of Ryan Homes, NVHomes, Fox Ridge Homes, and Heartland Homes. NVR has a market cap of $5.31 billion and is part of the industrial goods sector. The company has a P/E ratio of 30.3, above the S&P 500 P/E ratio of 17.7. Shares are up 14.5% year to date as of the close of trading on Tuesday. Currently there is one analyst that rates NVR a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates NVR as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, Perma-Fix Environmental Services ( PESI), up 10.2%, Tri-Tech ( TRIT), up 7.5%, Patrick Industries ( PATK), up 4.3%, and US Ecology ( ECOL), up 4%, were all gainers within the materials & construction industry with Sherwin-Williams Company ( SHW) being today's featured materials & construction industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the materials & construction industry could consider SPDR S&P Homebuilders ETF ( XHB) while those bearish on the materials & construction industry could consider ProShares Short Basic Materials Fd ( SBM).

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