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Here's Why NVR (NVR) is a Strong Momentum Stock

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.

Is This 1 Momentum Stock a Screaming Buy Right Now?

Momentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

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NVR (NVR)

Incorporated on Mar 4, 1993, NVR, Inc. is engaged in the construction and sale of single-family detached homes, townhomes and condominium buildings, all of which are primarily constructed on a pre-sold basis. To serve homebuilding customers, the company operates a mortgage banking and title services business. The company operates in two business segments:  Homebuilding and Mortgage Banking. The homebuilding (accounting for 98.4% of 2023 total revenues) division builds and sells homes under three brand names - Ryan Homes, NVHomes and Heartland Homes. The company currently operates in 36 metropolitan areas across 15 states and Washington, D.C. The two trade names - NVHomes and Heartland Homes are mainly for move-up and upscale buyers.

NVR sits at a Zacks Rank #3 (Hold), holds a Momentum Style Score of B, and has a VGM Score of B. The stock is up 3.6% and up 1.2% over the past one-week and four-week period, respectively, and NVR has gained 34.5% in the last one-year period as well. Additionally, an average of 17,594.45 shares were traded over the last 20 trading sessions.

A company's earnings performance is important for momentum investors as well. For fiscal 2024, two analysts revised their earnings estimate higher in the last 60 days for NVR, while the Zacks Consensus Estimate has increased $9.45 to $493.93 per share. NVR also boasts an average earnings surprise of 9.7%.

With strong earnings growth, a good Zacks Rank, and top-tier Momentum and VGM Style Scores, investors should think about adding NVR to their portfolios.

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NVR, Inc. (NVR) : Free Stock Analysis Report

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Zacks Investment Research