We recently published a list of 15 Highest-Priced Stocks Right Now. In this article, we are going to take a look at where NVR, Inc. (NYSE:NVR) stands against other highest-priced stocks right now.
2024 was a blockbuster year for the US markets, with the broad market index up 23.31% during the year, after rising 24.2% in the year prior. The two-year gain of 53% is the best performance for the index since the 66% rally between 1997 and 1998.
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The market benefited from declining interest rates, waning inflation, and a resilient economy that avoided recession. While analysts have projected continued growth in 2025, they are also cautious about the rally having gone too far with a correction in the offing this year. Fears of fierce trade wars and geopolitical conflicts could also hurt the stock market.
Over the past few weeks, President Trump has announced and then delayed tariffs on Canada and Mexico, imposed additional 10% tariffs on Chinese goods, and warned the European Union of similar treatment, citing the bloc’s treatment of the U.S. The new administration’s protectionist policies have sparked concerns in the markets about which countries will be next on the American president’s list, leaving several large multinationals unsure of how to plan.
According to analysts at Goldman Sachs Research, index earnings could drop by 2-3% if the US goes ahead with its proposed tariffs. Financial markets have been turbulent amid ongoing tariff negotiations between Washington and its major trade partners. Here is what chief equity strategist, David Kostin, wrote in a recent report.
“If company managements decide to absorb the higher input costs, then profit margins would be squeezed. If companies pass along the higher costs to end customers, then sales volumes may suffer. Firms may try to push back on their suppliers and ask them to absorb part of the cost of the tariff through lower prices.”
Analysts at the investment banking firm have also warned that protectionist policies driving up the value of the U.S. Dollar could further pressure the earnings of several companies, especially those that derive a significant portion of their revenues outside the United States.
Time will tell whether the Trump administration implements the tariffs or reaches a compromise with its trade partners, and how the markets react if the export taxes are imposed. However, if past trends are anything to go by, the broad market index dropped by a total of 5% on days when the U.S., under Trump’s first stint as president, announced tariffs in 2018 and 2019. The index fell by a cumulative 7% when other countries imposed retaliatory tariffs.
Methodology
We went through screeners to identify the highest-priced stocks as of the close of the day on Friday, February 14, 2025 and ranked them in ascending order of their share price.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A team of construction workers laboring together to build a townhome complex.
NVR, Inc. (NYSE:NVR)
Share Price on February 14: $7,365.72
NVR, Inc. (NYSE:NVR) is an American home-builder that constructs and sells single-family detached homes, townhomes, and condominium buildings, under the Ryan Homes, NVHomes, and Heartland Homes trade names. It operates through two segments: Homebuilding and Mortgage Banking.
On January 28, the company declared financial results for the fourth quarter of fiscal 2024. It reported a net income of $457.4 million, up 12% from last year. Diluted EPS was logged at $139.93, improving 15% year-over-year. Consolidated revenues for the quarter totaled $2.85 billion, growing 17% from the fourth quarter of 2023.
NVR, Inc. (NYSE:NVR) is benefiting from the housing shortage. While new orders for Homebuilding were down 8% year-over-year in Q4, they increased by 4% during the full year to 22,560 units. The segment posted an annual revenue of $10.29 billion in 2024, up 11% compared to 2023.
The Mortgage Banking segment closed loan production in Q4 totaling $1.70 billion, up 13% year-over-year. Income before tax for the quarter increased 55% to $45.9 million. Mortgage closed loan production for the full year 2024 stood at $6.26 billion, increasing 9% from last year.
Mortgage rates have declined for a fourth straight week, reaching a 2025 low on February 13. If current trends continue, NVR, Inc. (NYSE:NVR) can expect a further increase in sales in the homebuilding business and a higher volume of loans in the mortgage segment.
NVR, Inc. (NYSE:NVR) is one of the highest-priced stocks right now. Wall Street analysts are bullish on the stock with a consensus Buy rating and anticipate a further 27% uptick, on average, in its share price.
Overall, NVR ranks 2nd on our list of highest-priced stocks right now. While we acknowledge the potential of conglomerate holding companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NVR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
