NVR

It has been about a month since the last earnings report for Meritage Homes (MTH). Shares have lost about 0.4% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Meritage due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Meritage Homes Corporation before we dive into how investors and analysts have reacted as of late. Meritage Homes reported second-quarter 2026 results, with adjusted earnings surpassing the Zacks Consensus Estimate but total closing revenues missing the same. Year-over-year , both metrics declined. Adjusted earnings were $1.42 per share, down 32.1% year over year but beat the Zacks Consensus Estimate of $1.30. The bottom line surpassed the consensus mark by 9.23%, aided by lower direct construction costs and improved operating leverage from the first quarter.Total revenues (including Total Closing revenues and Financial Services revenues) were $1.408 billion, down 13.3% year over year. Homebuilding: Total home closing revenues were $1.4 billion, down 13.8% year over year and missed the consensus mark of $1.43 billion by 1.8%. Under the Homebuilding umbrella, home closing revenues declined 14.1% year over year to $1.388 billion, reflecting continued affordability pressures, volatile mortgage rates and cautious buyer sentiment. However, Land closing revenues rose to $12.72 million from $8.28 million a year ago.Home closings totaled 3,725 units in the second quarter of 2026, down 11% from the year-ago period as softer selling conditions weighed on delivery volume. Home closing revenues declined 14% year over year to $1.39 billion, reflecting lower closings and a 4% decrease in average sales price. Average sales price on closings fell to $373,000 from $387,000 a year ago, primarily due to geographic mix. Product mix also had an impact, while Meritage Homes used incremental incentives in certain markets to move aged spec inventory. Total home orders declined 9% year over year to 3,575 units. Home order value fell 11% to $1.38 billion, while average absorption pace decreased 19% to 3.5 sales per community per month from 4.3 a year ago. The lower absorption rate was partly offset by a 14% increase in average community count. Management noted that demand remained relatively stable sequentially, with no meaningful deterioration from the first quarter.Meritage Homes ended the quarter with 340 active communities, up 9% year over year but down 1% sequentially as some communities closed earlier than expected and certain planned openings shifted into the third quarter. Quarter-end backlog totaled 1,715 homes, down 2% from the prior-year period, while backlog value declined 5% to $661.9 million.Financial Services: Segment revenues fell 17.4% to $7.78 million, while segment profit slipped to $5.33 million from $5.61 million as results remained closely tied to home closing activity. Home closing gross margin contracted 280 basis points year over year to 18.3%, reflecting lost leverage on lower revenues and higher lot costs. Adjusted home closing gross margin was 18.6% versus 21.4% a year ago, but improved 80 basis points sequentially as direct costs per square foot fell nearly 6% year over year and cycle times stayed below 110 days.SG&A expenses declined 12% to $144 million, though SG&A as a percentage of home closing revenues increased 20 basis points to 10.4%. Net earnings fell 38% to $90.6 million, while the effective tax rate rose to 24.8% from 23.9% because of higher state income taxes. Meritage Homes ended the second quarter with $807 million in cash and cash equivalents, up from $775 million at year-end 2025. The company’s debt-to-capital ratio stood at 26.8%, while net debt-to-capital was 17.1%. Meritage Homes also had no outstanding borrowings under its revolving credit facility, underscoring its solid liquidity position. The company increased the revolver size to $980 million and had $896.9 million available under the facility at quarter-end.MTH returned $131 million to its shareholders through $100 million of share repurchases and $31 million of dividends. Land acquisition and development spending declined to $357 million from $509 million a year ago, while the company controlled 73,233 lots, equal to 5.2 years of supply. For the third quarter of 2026, Meritage Homes expects 3,300-3,600 home closings, home closing revenues of $1.26-$1.35 billion and home closing gross margin of around 18%. Earnings are projected at $1.10-$1.30 per share, with an effective tax rate of 24.5-25%.For full-year 2026, management now expects home closing volume and revenues to be around 5% below 2025 levels, although revenues could trend lower if market conditions require higher incentives. Meritage Homes reiterated its 5-10% year-over-year community count growth target and said second-half volume growth is expected to come from community expansion rather than an improving demand environment. Since the earnings release, investors have witnessed a downward trend in estimates review. The consensus estimate has shifted -13.23% due to these changes. Currently, Meritage has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a score of B on the value side, putting it in the second quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Meritage has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Meritage is part of the Zacks Building Products - Home Builders industry. Over the past month, NVR (NVR), a stock from the same industry, has gained 1.2%. The company reported its results for the quarter ended June 2026 more than a month ago. NVR reported revenues of $2.28 billion in the last reported quarter, representing a year-over-year change of -10.5%. EPS of $83.96 for the same period compares with $108.54 a year ago. For the current quarter, NVR is expected to post earnings of $108.90 per share, indicating a change of -3.1% from the year-ago quarter. The Zacks Consensus Estimate has changed +0% over the last 30 days. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for NVR. Also, the stock has a VGM Score of D. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Meritage Homes Corporation (MTH) : Free Stock Analysis Report NVR, Inc. (NVR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

A luxury builder in a soft market has bought back enough stock to outrun three years of shrinking profits, and the question is what happens when land competes for the same cash. Toll Brothers (TOL) has gained 7.7% over the past year but slipped over the last six months, and it trades about 10% below its 52-week high, a quiet year for a builder whose management described the sales environment in August as subdued. Over the last three years, earnings per share rose while net income fell, and what closed that gap was not the business but the share count. Toll Has Bought Itself Back Faster Than Profits Fell Averaged over those three years, net income has fallen 2.8% a year while earnings per share have risen 2.3% a year. Nothing operational explains the difference; it is arithmetic. The company has retired about 5.1% of its shares a year on average across that stretch, and 4.8% in the past twelve months alone, so each remaining owner's claim on a smaller profit pool grew anyway. With the dividend added, the whole payout is a 5.3% shareholder yield, once stock compensation is netted out. A Million-Dollar Buyer, And Upgrades Across The Board That yield is funded by a narrow, wealthy slice of the housing market. The luxury move-up business, where the average home sells for about $1.35 million, was roughly 61% of home sales revenue in fiscal Q3 2026 and carries the highest margin of the company's buyer segments. The spending does not stop at signing: across Toll's buyers as a whole, upgrades, structural options and lot premiums averaged $207,000 a home in the quarter, and management says design studio work of that sort is highly accretive to margin. Pricing holds best where it matters most: the more expensive the home, the smaller the incentive as a share of its price. Growth Gets The Cash Before Shareholders Do Free cash flow covers the buybacks and dividends about 1.6 times over, but the payout is not what that cash is aimed at first. Management puts growth first in the capital-allocation order and funds repurchases out of the operating cash flow that is left, and growth here means land: roughly $452 million spent on land acquisition in fiscal Q3 2026, against $2.65 billion of home sales revenue in that quarter. So far that cash flow has covered both, and the fiscal 2026 repurchase plan was raised to $700 million from $650 million. Net debt runs at about 1.1 times EBITDA, a moderate load rather than a stretched one. Balance sheets of that kind are a standing feature of the Trefis High Quality Portfolio's holdings. Cheap Against Earnings That Still Move With The Cycle At 10.9 times trailing earnings, the market is not asking much for the engine. That is a case for patience rather than a promise. Over three years the stock returned 96% in price, though it was up 119% at its peak and has handed some of that back, and buybacks were only one contributor alongside a moving multiple. The engine is real and funded; the profits it works on have shrunk over the last three years, and management, four years into a difficult housing market, is not yet calling a bottom. Whether the retirement pace survives a leaner year is the open question, and the dividend and buyback record is where the answer shows up first. A Cheap Compounder Is Still One Cyclical Bet An engine that quietly retires stock is worth owning, but it sits inside one industry and one housing cycle. Investors who want that compounding spread across many businesses rather than one builder can start with the Trefis High Quality Portfolio. That portfolio has a track record of outpacing the three major indices - the S&P 500, S&P Mid-cap, and Russell 2000.

Dycom Industries, Inc. DY is scheduled to report its second-quarter fiscal 2027 results on Aug. 26, before the opening bell.In the last reported quarter, the company’s adjusted earnings and contract revenues topped the Zacks Consensus Estimate by 61.9% and 18%, respectively. On a year-over-year basis, both metrics grew 84.9% and 56.1%, respectively.Dycom’s earnings surpassed estimates in each of the trailing four quarters, with an average of 25%. The Zacks Consensus Estimate for fiscal second-quarter earnings per share (EPS) has moved down to $4.62 from $4.64 over the past 30 days. However, the revised estimate indicates 38.7% year-over-year growth.The consensus estimate for contract revenues is pegged at $1.97 billion, indicating a 43.2% year-over-year rise from $1.38 billion. Dycom Industries, Inc. price-eps-surprise | Dycom Industries, Inc. Quote RevenuesDycom’s top-line performance in the fiscal second quarter is expected to have benefited from surging digital infrastructure demand, mainly tied to Artificial Intelligence and hyperscale computing. This is likely because telecom operators and technology firms are accelerating network upgrades. Moreover, the company is expected to have witnessed increased activity for fiber-to-the-home deployments, long-haul and middle-mile fiber infrastructure builds and large data center campuses. Moreover, the Broadband Equity Access and Deployment (BEAD) program, offering to be a multiyear catalyst amid strong project activity, is likely to have added to the quarter’s top-line growth.Notably, the acquisition of Power Solutions, LLC, under the Building Systems segment, is expected to have aided this segment’s contributions in the quarter, as it strengthens DY’s position in data center infrastructure. For the fiscal second quarter, Dycom expects contract revenues between $1.94 billion and $2.01 billion.For the fiscal second quarter, our Zacks model expects revenues from the Communications and Building Systems segments to be $1.61 billion and $358 million, sequentially up 2.7% but down 9.5%, respectively.Earnings & MarginsFor the fiscal second quarter, Dycom’s bottom line is expected to have increased year over year because of incremental leverage from contract revenue growth and strong operational capabilities. Owing to the robust market fundamentals, the company projects adjusted EBITDA between $284 million and $303 million, up from $205.5 million reported in the prior-year quarter. The company anticipates adjusted EPS in the range of $4.40-$4.82 for the fiscal second quarter.Our model projects adjusted EBITDA to grow year over year by 41% to $289.8 million.Although trade policy uncertainty and tariff-related cost increases are concerning for bottom-line growth, the increasing top line and favorable market demand trends are expected to have more than offset these headwinds.BacklogFor the fiscal second quarter, our model expects a total backlog of $14.11 billion, indicating growth of 76.6% from $7.99 billion reported in the prior-year quarter. Our proven model does not conclusively predict an earnings beat for Dycom this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here, as you will see below.DY’s Earnings ESP: The company has an Earnings ESP of +0.69%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.DY’s Zacks Rank: The stock currently carries a Zacks Rank #4 (Sell).You can see the complete list of today’s Zacks #1 Rank stocks here. Martin Marietta Materials, Inc. MLM reported outstanding second-quarter 2026 results, wherein adjusted earnings (from continuing operations) and revenues topped the Zacks Consensus Estimate and increased year over year.Martin Marietta’s results benefited from strong organic performance and contributions from acquisitions. Aggregates shipments increased 17% to a record 61.6 million tons, supported by infrastructure and heavy nonresidential demand. Heavy nonresidential demand also benefits from data center, power-generation and warehouse construction. Martin Marietta raised its 2026 revenue guidance to a range of $7.2-$7.4 billion, with a midpoint of $7.3 billion.CRH plc CRH reported exceptional second-quarter 2026 financial results with adjusted earnings and total revenues topping the Zacks Consensus Estimate and growing year over year. Positive pricing, favorable demand and acquisition contributions supported the quarterly growth. CRH completed 11 acquisitions during the quarter for $1.1 billion.CRH reaffirmed 2026 net income guidance of $3.9-$4.1 billion, adjusted EBITDA guidance of $8.1-$8.5 billion and earnings guidance of $5.60-$6.05 per share. The company expects public infrastructure spending and reindustrialization activity to support demand, while new-build residential conditions remain subdued.NVR, Inc. NVR reported second-quarter 2026 results, with earnings and Homebuilding revenues missing the Zacks Consensus Estimate. Earnings and Homebuilding revenues also declined on a year-over-year basis.NVR’s quarter reflected stronger order activity and a lower cancellation rate, but fewer settlements, softer pricing and margin pressure weighed on results. Settlements fell 8% to 5,058 units from 5,475 units, limiting revenue generation during the period. Backlog units increased 9% year over year, while Homebuilding's gross margin contracted amid higher lot costs, affordability challenges and land deposit impairments. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dycom Industries, Inc. (DY) : Free Stock Analysis Report Martin Marietta Materials, Inc. (MLM) : Free Stock Analysis Report NVR, Inc. (NVR) : Free Stock Analysis Report CRH PLC (CRH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the home builders industry, including NVR (NYSE:NVR) and its peers. Traditionally, homebuilders have built competitive advantages with economies of scale that lead to advantaged purchasing and brand recognition among consumers. Aesthetic trends have always been important in the space, but more recently, energy efficiency and conservation are driving innovation. However, these companies are still at the whim of the macro, specifically interest rates that heavily impact new and existing home sales. In fact, homebuilders are one of the most cyclical subsectors within industrials. The 9 home builders stocks we track reported a mixed Q2. As a group, revenues were in line with analysts’ consensus estimates. In light of this news, share prices of the companies have held steady as they are up 3.8% on average since the latest earnings results. Known for its unique land acquisition strategy, NVR (NYSE:NVR) is a respected homebuilder and mortgage company in the United States. NVR reported revenues of $2.33 billion, down 10.5% year on year. This print fell short of analysts’ expectations by 3.9%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ EPS estimates. NVR delivered the weakest performance against analyst estimates among its peers. Interestingly, the stock is up 1.3% since reporting and currently trades at $6,432. Read our full report on NVR here, it’s free. Founded in 1977, Installed Building Products (NYSE:IBP) is a company specializing in the installation of insulation, waterproofing, and other complementary building products for residential and commercial construction. Installed Building Products reported revenues of $777.8 million, up 2.3% year on year, outperforming analysts’ expectations by 4.4%. The business had a stunning quarter with an impressive beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates. Installed Building Products pulled off the biggest analyst estimate beat of the whole group. The market seems content with the results as the stock is up 3.4% since reporting. It currently trades at $249.66. Is now the time to buy Installed Building Products? Access our full analysis of the earnings results here, it’s free. One of the largest homebuilders in America, Lennar (NYSE:LEN) is known for constructing affordable, move-up, and retirement homes across a range of markets and communities. Lennar reported revenues of $7.94 billion, down 5.2% year on year, falling short of analysts’ expectations by 2.4%. It was a slower quarter, leaving some shareholders looking for more. As expected, the stock is down 8% since the results and currently trades at $87.40. Read our full analysis of Lennar’s results here. Based in Texas, LGI Homes (NASDAQ:LGIH) is a homebuilding company specializing in constructing affordable, entry-level single-family homes in desirable communities across the United States. LGI Homes reported revenues of $501.5 million, up 3.7% year on year. This print beat analysts’ expectations by 2.9%. All in all, it was a very strong quarter for the company. LGI Homes scored the fastest revenue growth in the group. The stock is up 3% since reporting and currently trades at $57.81. Read our full, actionable report on LGI Homes here, it’s free. One of the largest homebuilding companies in the U.S., D.R. Horton (NYSE:DHI) builds a variety of new construction homes across multiple markets. D.R. Horton reported revenues of $9.23 billion, flat year on year. This result was in line with analysts’ expectations. Taking a step back, it was a slower quarter as it produced full-year revenue guidance missing analysts’ expectations significantly. The stock is up 3.7% since reporting and currently trades at $150.09. Read our full, actionable report on D.R. Horton here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Toll Brothers, Inc. TOL is scheduled to report its third-quarter fiscal 2026 results on Aug. 18, after market close.In the last reported quarter, the company’s adjusted earnings and total revenues topped the Zacks Consensus Estimate by 5.4% and 5.1%, respectively. Year over year, both metrics declined 22.3% and 7.6%, respectively.TOL’s earnings surpassed estimates in three of the trailing four quarters and missed on the remaining occasion, with an average surprise of 2.6%. The Zacks Consensus Estimate for fiscal third-quarter earnings per share (EPS) has moved south to $2.89 from $2.90 in the past 60 days. However, the revised estimate indicates a 22.3% year-over-year decline.The consensus estimate for total revenues is pegged at $2.6 billion, indicating a 11.8% year-over-year decline from $3 billion. Toll Brothers Inc. price-eps-surprise | Toll Brothers Inc. Quote RevenuesDuring the fiscal third quarter, Toll Brothers’ top-line performance is expected to have declined year over year due to ongoing uncertainties in the housing market in the United States. Homebuyers’ sentiments are likely to have been weak as affordability challenges persist amid elevated mortgage rates and an uncertain economic scenario. Per Freddie Mac, the 30-year fixed mortgage rate has climbed from 6.37% as of the week ending May 7, 2026, to 6.66% as of the week ending July 30, 2026. Demand softness across the South, Mountain and Pacific geographic segments is likely to have restricted the revenue growth.For the fiscal third quarter, TOL expects home deliveries to be between 2,600 units and 2,700 units, indicating a decline from 2,959 units delivered in the year-ago quarter. We expect home deliveries to be down 9.8% year over year to 2,669 units.Nonetheless, the strength of its luxury positioning alongside the approach of offering affordable luxury homes is encouraging. Besides, the improvements in cycle times, increased supply of spec homes and favorable pricing measures are expected to have boded well in the fiscal third quarter.For the quarter, Toll Brothers expects the average selling price (ASP) of delivered homes to be within $965,000-$985,000, up from $973,600 in the year-ago quarter. Our model expects the metric to inch up year over year by 0.6% to $979,900 in the fiscal third quarter.Earnings & MarginsThe bottom line of Toll Brothers is expected to have tumbled in the fiscal third quarter due to low leverage from weak revenue growth, higher payroll costs and marketing and insurance costs. Besides, a shift in the mix of revenues to lower-margin products in certain geographic regions is expected to have weighed on the home sales gross margin during the fiscal third quarter.For the quarter to be reported, Toll Brothers expects adjusted home sales gross margin to be 25.25%, reflecting a 225-basis point (bps) contraction year over year. The homebuilder also expects SG&A expenses (as a percentage of home sales revenues) to be about 10%, up 120 bps year over year.BacklogFor the fiscal third quarter, our model expects a total backlog of 5,257 units, down year over year by 4.3%, with potential revenues declining 2.1% to $6.24 billion. Our proven model does not conclusively predict an earnings beat for Toll Brothers this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here, as you will see below.TOL’s Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.TOL’s Zacks Rank: The stock currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here. NVR, Inc. NVR reported second-quarter 2026 results, with earnings and Homebuilding revenues missing the Zacks Consensus Estimate. Earnings and Homebuilding revenues also declined on a year-over-year basis.NVR’s quarter reflected stronger order activity and a lower cancellation rate, but fewer settlements, softer pricing and margin pressure weighed on results. Settlements fell 8% to 5,058 units from 5,475 units, limiting revenue generation during the period. Backlog units increased 9% year over year, while Homebuilding's gross margin contracted amid higher lot costs, affordability challenges and land deposit impairments.PulteGroup, Inc. PHM reported better-than-expected second-quarter 2026 results, with adjusted earnings and total revenues topping the Zacks Consensus Estimate, but declining year over year.PulteGroup’s quarterly results reflect reduced home-closing volumes, softer ASP and margin compression. Ongoing softness in the housing market because of weaker consumer confidence and affordability challenges due to high mortgage rates hurt the top-line growth. Home sale gross margin contracted 200 bps year over year to 25%.D.R. Horton, Inc. DHI reported third-quarter fiscal 2026 earnings of $3.20 per share, beating the Zacks Consensus Estimate of $2.99 by 7%. Revenues of $9.23 billion also surpassed the consensus mark of $9.19 billion by 0.5%. On a year-over-year basis, earnings declined 4.8%, while revenues increased marginally.The earnings and revenue beat were driven by higher home-closing volumes, resilient home sales margins, disciplined management of pricing and incentives, and contributions from the Rental, Forestar and Financial Services businesses. However, lower profitability, elevated incentives and cautious consumer demand continued to weigh on results. D.R. Horton now expects fiscal 2026 consolidated revenues of $32.5-$33 billion, down from $33.5-$34.5 billion expected earlier. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Toll Brothers Inc. (TOL) : Free Stock Analysis Report PulteGroup, Inc. (PHM) : Free Stock Analysis Report D.R. Horton, Inc. (DHI) : Free Stock Analysis Report NVR, Inc. (NVR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Over the past six months, NVR’s shares (currently trading at $6,296) have posted a disappointing 18.4% loss, well below the S&P 500’s 4.9% gain. This was partly driven by its softer quarterly results and may have investors wondering how to approach the situation. Is there a buying opportunity in NVR, or does it present a risk to your portfolio? Dive into our full research report to see our analyst team’s opinion, it’s free. Despite the more favorable entry price, we’re sitting this one out for now. Here are three reasons why NVR doesn’t excite us, plus one stock we’d rather own. A company’s long-term performance is an indicator of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Regrettably, NVR’s sales grew at a sluggish 1.9% compounded annual growth rate over the last five years. This fell short of our benchmarks. Analyzing the long-term change in earnings per share (EPS) shows whether a company’s incremental sales were profitable — for example, revenue could be inflated through excessive spending on advertising and promotions. NVR’s EPS grew at 6% compounded annual growth rate over the last five years. On the bright side, this performance was better than its 1.9% annualized revenue growth and tells us the company became more profitable on a per-share basis as it expanded. ROIC, or return on invested capital, is a metric showing how much operating profit a company generates relative to the money it has raised (debt and equity). Over the last few years, NVR’s ROIC has unfortunately decreased significantly. We like what management has done in the past, but its declining returns are perhaps a symptom of fewer profitable growth opportunities. NVR doesn’t pass our quality test. After the recent drawdown, the stock trades at 16.4× forward P/E (or $6,296 per share). At this valuation, there’s a lot of good news priced in - we think other companies feature superior fundamentals at the moment. Let us point you toward a safe-and-steady industrials business benefiting from an upgrade cycle. ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies. Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. NVR (NVR) has drawn investor attention after reporting second quarter 2026 earnings along with updates on its ongoing share repurchase programs, offering fresh data on profitability and capital returns. See our latest analysis for NVR. NVR's latest earnings and active buyback activity sit against a share price of $6,147.05 that has moved lower in recent months, with the stock down 7.48% on a 1 month share price return basis and 15.55% on a year to date share price return basis. At the same time, the 1 year total shareholder return of 20.79% and 5 year total shareholder return of 17.92% point to mixed longer term momentum. If this earnings update has you thinking about where else capital could work, it may be worth scanning for 18 top founder-led companies NVR now sits lower after a weak first half for earnings, yet it continues to retire stock through buybacks. Does that combination still leave enough upside in the current price to justify the risks? NVR closed at $6,147.05, while the leading narrative fair value sits at $3,758. That gap puts the current share price well above this narrative’s estimate. Read the complete narrative. This narrative does not just plug numbers into a spreadsheet. It leans heavily on long run return on invested capital, past cycle performance, and an entry price discipline that treats valuation as the key variable. Want to see how those moving parts line up against today’s $6,147.05 share price and a much lower fair value anchor? Result: Fair Value of $3,758 (OVERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, the NVR narrative could be challenged if housing demand weakens further or if the lot option model starts to lose its historical edge. Find out about the key risks to this NVR narrative. The user narrative flags NVR as 64% overvalued against a $3,758 fair value, yet the current market data tell a different story. On a P/E of 14.4x versus a fair ratio of 20.3x, NVR screens as cheap on earnings, even if it trades richer than the Consumer Durables industry at 13.4x and peers at 11.4x. Could the market be underpricing its earnings power while the narrative model focuses more heavily on long term growth risks? See what the numbers say about this price — find out in our valuation breakdown. With the debate around NVR’s valuation in mind, it helps to test the optimism in the numbers yourself and move quickly while sentiment is divided. To see what is currently exciting investors, review the 1 key reward If NVR has sharpened your thinking, do not stop here. The right mix of other stocks could balance your risk and sharpen your return potential. Target potential mispricing and keep your watchlist fresh by checking 55 high quality undervalued stocks that match strong fundamentals with appealing entry prices. Strengthen your income stream and assess payout resilience through the 9 dividend fortresses that focus on higher yielding opportunities. Prioritise resilience and sleep better at night by reviewing 81 resilient stocks with low risk scores that emphasise steadier profiles and lower risk scores. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NVR. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

NVR, Inc. NVR has pulled back, but a lower share price alone does not make the stock clearly attractive. Investors have to weigh a high-quality operating model against declining earnings, lower revenues and a valuation that still looks full versus homebuilding peers.The case now rests on balance. NVR’s asset-light lot strategy and buybacks support long-term per-share value, while weaker profitability and a price target below the current market price argue for restraint. Second-quarter 2026 earnings of $83.96 per share fell 22.6% year over year and missed the Zacks Consensus Estimate by 11.5%. Homebuilding revenues of $2.28 billion also came in below the consensus mark by 5.2%. NVR, Inc. price-eps-surprise | NVR, Inc. Quote The miss reflected lower settlements, softer pricing and margin pressure. Full-year earnings are projected to decline 14.8%, keeping expectations under pressure even though net new orders rose and backlog expanded. NVR trades at about 15.9X forward 12-month earnings, above the homebuilding sub-industry’s 11.1X multiple and slightly ahead of its five-year median of 15.1X. That premium leaves less room for disappointment when earnings estimates are moving lower.The stock price of $6,381.79 also sits above the $5,425 price target, which reflects 13.55X forward earnings. KB HOME KBH gives investors another homebuilder to compare when assessing whether affordability pressure is already reflected in valuations across the group. Toll Brothers, Inc. TOL, with its luxury-home positioning, offers a different demand profile within the same cyclical industry. NVR’s biggest structural strength is its lot strategy. The company generally buys finished lots from third-party developers rather than tying up large amounts of capital in raw land development.That approach limits exposure to entitlement delays, infrastructure spending and long-duration land risk. NVR controlled 184,400 lots at the end of the second quarter, giving it future supply without abandoning a model built around capital flexibility. Capital returns remain central to NVR’s investment case. The company repurchased 144,896 shares for $989.7 million during the first half of 2026, including 54,716 shares for $357.8 million in the second quarter.The board also authorized an additional $750 million repurchase program with no expiration date. The offset is that homebuilding cash declined to $1.09 billion from $1.88 billion at year-end 2025 as inventory, contract land deposits and buybacks absorbed capital. The bottom line is that NVR’s operating discipline still deserves respect, but the stock does not offer a clean bargain after the earnings and revenue miss. Premium valuation, declining profit expectations and a price target below the market price make the risk-reward balance less favorable. NVR currently carries a Zacks Rank #3 (Hold). That rank does not point to a strong near-term buying opportunity, especially with the current-year earnings outlook still under pressure. You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.The Style Scores are mixed. NVR has a VGM Score of B and Momentum Score of B, which provide some support for investors who focus on broader style characteristics and price trends. However, the Value Score of C and Growth Score of C reinforce the need for patience. Investors may find NVR’s capital efficiency and buybacks attractive, but the stock’s valuation and earnings trajectory suggest a measured stance rather than an aggressive entry point. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NVR, Inc. (NVR) : Free Stock Analysis Report Toll Brothers Inc. (TOL) : Free Stock Analysis Report KB Home (KBH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

NVR, Inc. NVR reported second-quarter 2026 results, with earnings and Homebuilding revenues missing the Zacks Consensus Estimate. Earnings and Homebuilding revenues also declined on a year-over-year basis.The quarter reflected stronger order activity and a lower cancellation rate, but fewer settlements, softer pricing and margin pressure weighed on results. Backlog units increased 9% year over year, while Homebuilding gross margin contracted amid higher lot costs, affordability challenges and land deposit impairments.Following the results, NVR stock slipped 3.1% during yesterday’s trading hours. The company reported earnings of $83.96 per share, down 22.6% year over year and missing the Zacks Consensus Estimate of $94.82 by 11.5%. NVR, Inc. price-consensus-eps-surprise-chart | NVR, Inc. Quote Homebuilding revenues of $2.28 billion also missed the consensus mark of $2.41 billion by 5.2%. Revenues declined 10.5% year over year from $2.55 billion, reflecting lower settlement volumes and a decrease in the average settlement price. Consolidated revenues (Homebuilding & Mortgage Banking fees combined) amounted to $2.33 billion, down 10.4% on a year-over-year basis. Homebuilding revenues decreased to $2.28 billion from $2.55 billion in the prior-year quarter. Settlements fell 8% to 5,058 units from 5,475 units, limiting revenue generation during the period. Our model predicted settlements to decline 6.7% year over year to 5,107 units.The average settlement price declined 3% year over year to $450,700. The combination of fewer closings and a lower average price weighed on the segment’s top-line performance. Our estimate for the metric was $471,500. Homebuilding gross margin contracted to 19.2% from 21.5% a year ago. Profitability was pressured by higher lot costs, continued affordability challenges and weak consumer sentiment, which led to increased pricing pressure. Our estimate for the metric was 18.8%.The quarter also included approximately $21.7 million of contract land deposit impairments. Consequently, homebuilding income before taxes declined 30% year over year to $293.2 million. Mortgage closed loan production declined 13% year over year to $1.35 billion from $1.56 billion. Mortgage banking fees decreased to $46.6 million from $50.5 million.Mortgage banking income before taxes fell 14% to $25.4 million from $29.6 million. The capture rate, which represents the percentage of NVR homebuyers using the company’s mortgage services, decreased to 85% from 87%. New orders, net of cancellations, increased 9% year over year to 5,885 units. Growth was led by the South East, where orders rose to 2,228 units from 1,953 units, while Mid Atlantic orders increased to 2,081 units from 1,930 units.The average sales price of new orders declined 5% to $437,100. Our model predicted the ASP of new orders at $457,300. However, the cancellation rate improved to 14.9% from 16.5%, suggesting that a greater proportion of signed contracts remained intact during the quarter. Backlog totaled 10,998 units as of June 30, 2026, up 9% from 10,069 units a year earlier. The dollar value of backlog increased 5% to $4.99 billion.The average backlog price declined to $453,900 from $472,100. Average active communities increased to 442 from 426, expanding the company’s selling footprint while stronger order activity supported the year-over-year backlog increase. Homebuilding cash and cash equivalents were $1.09 billion as of June 30, 2026, compared with $1.88 billion at the end of 2025. Homebuilding inventory increased to $2.24 billion from $1.72 billion during the same period. Mortgage banking cash and cash equivalents were $50.9 million versus $32.6 million at year-end.NVR repurchased 54,716 shares during the quarter for an aggregate cost of $357.8 million. Shares outstanding declined to 2.68 million from 2.88 million a year earlier, helping offset part of the effect of lower net income on per-share earnings. Currently, NVR carries a Zacks Rank #4 (Sell).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.PulteGroup, Inc. PHM reported better-than-expected second-quarter 2026 results, with adjusted earnings and total revenues topping the Zacks Consensus Estimate, but declining year over year. The quarterly results reflect reduced home-closing volumes, softer average selling prices (ASP) and margin compression.PulteGroup ended the quarter with a backlog of 10,966 homes, up 1.7% from the prior-year level. Backlog units increased in the Northeast, Florida, Midwest and Texas, while the Southeast and West reported declines. The value of homes in backlog slipped 0.6% to $6.80 billion. The divergence between higher units and lower value indicates that the average value of homes in backlog declined year over year, consistent with PHM’s broader pricing pressure.D.R. Horton, Inc. DHI reported third-quarter fiscal 2026 earnings of $3.20 per share, beating the Zacks Consensus Estimate of $2.99 by 7%. Revenues of $9.23 billion also surpassed the consensus mark of $9.19 billion by 0.5%. On a year-over-year basis, earnings declined 4.8%, while revenues increased marginally.DHI’s earnings and revenue beat was driven by higher home-closing volumes, resilient home sales margins, disciplined management of pricing and incentives, and contributions from the Rental, Forestar and Financial Services businesses. However, lower profitability, elevated incentives and cautious consumer demand continued to weigh on results. D.R. Horton now expects fiscal 2026 consolidated revenues of $32.5-$33 billion, down from $33.5-$34.5 billion expected earlier.Lennar Corporation LEN reported mixed second-quarter fiscal 2026 results, with adjusted earnings topping the Zacks Consensus Estimate while revenues missed the same. Year over year, both metrics declined, given ongoing softness in housing demand and a lower ASP for homes delivered.LEN’s Homebuilding revenues declined 2% year over year to $7.62 billion from $7.84 billion, with home deliveries increasing 2% to 20,519 homes from 20,131 homes a year ago. Backlog at quarter-end increased to 16,818 homes from 15,538 homes. For the third quarter of fiscal 2026, Lennar expects home deliveries in the range of 20,500-21,500 and new orders between 21,000 and 22,000 homes. Gross margin on home sales is expected to be approximately 16%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NVR, Inc. (NVR) : Free Stock Analysis Report PulteGroup, Inc. (PHM) : Free Stock Analysis Report Lennar Corporation (LEN) : Free Stock Analysis Report D.R. Horton, Inc. (DHI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

NVR (NVR) came out with quarterly earnings of $83.96 per share, missing the Zacks Consensus Estimate of $94.82 per share. This compares to earnings of $108.54 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -11.45%. A quarter ago, it was expected that this homebuilder would post earnings of $78.25 per share when it actually produced earnings of $67.76, delivering a surprise of -13.41%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. NVR, which belongs to the Zacks Building Products - Home Builders industry, posted revenues of $2.28 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 5.23%. This compares to year-ago revenues of $2.55 billion. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. NVR shares have lost about 12.9% since the beginning of the year versus the S&P 500's gain of 9.6%. While NVR has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for NVR was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $107.42 on $2.59 billion in revenues for the coming quarter and $371.11 on $9.59 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Building Products - Home Builders is currently in the bottom 16% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, M/I Homes (MHO), has yet to report results for the quarter ended June 2026. The results are expected to be released on July 29. This homebuilder is expected to post quarterly earnings of $3.17 per share in its upcoming report, which represents a year-over-year change of -28.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. M/I Homes' revenues are expected to be $1.18 billion, up 1.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NVR, Inc. (NVR) : Free Stock Analysis Report M/I Homes, Inc. (MHO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

RESTON, VA, July 23, 2026 /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, 2026 of $236.5 million, or $83.96 per diluted share. For the second quarter ended June 30, 2026, net income and diluted earnings per share decreased 29% and 23%, respectively, when compared to 2025 second quarter net income of $333.7 million, or $108.54 per diluted share. Consolidated revenues for the second quarter of 2026 totaled $2.33 billion, compared to $2.60 billion in the second quarter of 2025. For the six months ended June 30, 2026, consolidated revenues were $4.21 billion, a 16% decrease from $5.00 billion reported for the same period of 2025. Net income for the six months ended June 30, 2026 was $434.8 million, a decrease of 31% when compared to net income for the six months ended June 30, 2025 of $633.3 million. Diluted earnings per share for the six months ended June 30, 2026 was $151.38, a decrease of 26% from $203.20 per diluted share for the same period of 2025. Homebuilding New orders in the second quarter of 2026 increased by 9% to 5,885 units, when compared to 5,379 units in the second quarter of 2025. The average sales price of new orders in the second quarter of 2026 was $437,100, a decrease of 5% when compared to the second quarter of 2025. The cancellation rate in the second quarter of 2026 was 15% compared to 17% in the second quarter of 2025. Settlements in the second quarter of 2026 decreased by 8% to 5,058 units, compared to 5,475 units in the second quarter of 2025. The average settlement price in the second quarter of 2026 was $450,700, a decrease of 3% when compared to the second quarter of 2025. Our backlog of homes sold but not settled as of June 30, 2026 increased on a unit basis by 9% to 10,998 units and increased on a dollar basis by 5% to $4.99 billion when compared to the respective backlog unit and dollar balances as of June 30, 2025. Homebuilding revenues of $2.28 billion in the second quarter of 2026 decreased by 11% compared to homebuilding revenues of $2.55 billion in the second quarter of 2025. Gross profit margin in the second quarter of 2026 decreased to 19.2%, from 21.5% in the second quarter of 2025. Gross profit margin was negatively impacted by higher lot costs, pricing pressure due to continued affordability challenges and weak consumer sentiment, and by contract land deposit impairments totaling approximately $21.7 million. Income before tax from the homebuilding segment totaled $293.2 million in the second quarter of 2026, a decrease of 30% when compared to the second quarter of 2025. Mortgage Banking Mortgage closed loan production in the second quarter of 2026 totaled $1.35 billion, a decrease of 13% when compared to the second quarter of 2025. Income before tax from the mortgage banking segment totaled $25.4 million in the second quarter of 2026, a decrease of 14% when compared to $29.6 million in the second quarter of 2025. About NVR NVR, Inc. operates in two business segments: homebuilding and mortgage banking. The homebuilding segment sells and builds homes under the Ryan Homes, NVHomes and Heartland Homes trade names, and operates in thirty-seven metropolitan areas in sixteen states and Washington, D.C. For more information about NVR, Inc. and its brands, see www.nvrinc.com, www.ryanhomes.com, www.nvhomes.com and www.heartlandluxuryhomes.com. Some of the statements in this release made by the Company constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Certain, but not necessarily all, of such forward-looking statements can be identified by the use of forward-looking terminology, such as "believes," "expects," "may," "will," "should," "could," or "anticipates" or the negative thereof or other comparable terminology. All statements other than of historical facts are forward-looking statements. Forward-looking statements contained in this document may include those regarding market trends, NVR's financial position and financial results, business strategy, the outcome of pending litigation, investigations or similar contingencies, and projected plans and objectives of management for future operations. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance of NVR to be materially different from future results, performance or achievements expressed or implied by the forward-looking statements. Such risk factors include, but are not limited to the following: general economic and business conditions (on both a national and regional level); interest rate changes; access to suitable financing by NVR and NVR's customers; increased regulation in the mortgage banking industry; the ability of our mortgage banking subsidiary to sell loans it originates into the secondary market; competition; the availability and cost of land and other raw materials used by NVR in its homebuilding operations; shortages of labor; the economic impact of a major epidemic or pandemic; weather related slow-downs; building moratoriums; governmental regulation; fluctuation and volatility of stock and other financial markets; mortgage financing availability; and other factors over which NVR has little or no control. NVR undertakes no obligation to update such forward-looking statements except as required by law. 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