NVR Inc. (NVR): Today's Featured Materials & Construction Winner

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

NVR ( NVR) pushed the Materials & Construction industry higher today making it today's featured materials & construction winner. The industry as a whole closed the day up 0.2%. By the end of trading, NVR rose $9.56 (1.0%) to $962.03 on light volume. Throughout the day, 22,421 shares of NVR exchanged hands as compared to its average daily volume of 34,600 shares. The stock ranged in a price between $946.52-$962.22 after having opened the day at $952.86 as compared to the previous trading day's close of $952.47. Other companies within the Materials & Construction industry that increased today were: India Globalization Capital ( IGC), up 24.4%, Guanwei Recycling ( GPRC), up 21.7%, Desarrolladora Homex SAB de CV ADR ( HXM), up 5.5% and Gafisa ( GFA), up 5.2%.

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 $4.3 billion and is part of the industrial goods sector. The company has a P/E ratio of 20.7, above the S&P 500 P/E ratio of 17.7. Shares are up 3.7% year to date as of the close of trading on Wednesday. Currently there are 3 analysts that rate NVR a buy, no analysts rate it a sell, and 2 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, increase in stock price during the past year and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.

On the negative front, Pure Cycle Corporation ( PCYO), down 8.6%, TRI Pointe Homes ( TPH), down 3.6%, TRC Companies ( TRR), down 3.4% and Industrial Services of America ( IDSA), down 2.9% , were all laggards within the materials & construction industry with PulteGroup ( PHM) being today's materials & construction industry laggard.

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).

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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