Everybody remembers the great crisis of 2008-2009. We were on the verge of apocalypse back then and we thought that capitalist was coming to an end.
Probably that a lot of people still carry the post-traumatic syndrome of that period. So, they don't trust a lot of banks and they don't trust the construction sector.
So, I'm gonna write about a stock that combines these two evil topics: NVR inc.
What do they do at NVR? Homebuilding and mortgage banking.
Here's some numbers:
First of all, officers own about 10% of the shares, which is very interesting...
Current PE: 19
Forward PE: 12
Current ROE: 36
Average ROE last 5 years:24
Average annual EPS growth last 5 years: 35%
EPS growth last quarter: 60%
Earnings predictability according to Value Line: 80%
Of course, the forward PE isn't low for no reason. I bet it's because of that trade war that Trump has started. The construction industry is dependent on many materials which are imported. So, I believe that's why the stock had a substantial drop lately.
Please note that it's one of the most expensive stock on the market. On july 30th, you'd have to pay about 2700 USD to own a single share. I'm repeating myself here: I like that. It keeps away rookies.
In my view, that stock deserves at least to be on a watch list because many things looks very interesting. Actually, everything is there, apart maybe the sector. But if you want a cloudless sky, you can buy something else at 30 times the earnings.