Reston, Virginia-based NVR, Inc. (NVR) engages 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. With a market cap of $23.8 billion, NVR operates through Homebuilding and Mortgage Banking segments.

Companies worth $10 billion or more are generally described as "large-cap stocks." NVR fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the residential construction industry. It sells its homes and buildings under Ryan Homes, NVHomes, and Heartland Homes names.

Despite its notable strengths, NVR stock has dropped 17.6% from its all-time high of $9,964.77 touched on Oct. 14, 2024. Meanwhile, the stock has soared 13.7% over the past three months, but has notably underperformed the industry-focused iShares U.S. Home Construction ETF’s (ITB) 23.7% surge during the same time frame.

NVR’s performance looks much grimmer over the longer term. The stock has observed a marginal 38 bps uptick in 2025 and plummeted 12.9% over the past 52 weeks, lagging behind ITB’s 7.9% gains on a YTD basis and 10.5% drop over the past year.

The stock has remained mostly below its 200-day moving average since December 2024 until last month and has remained above its 50-day moving average for the last four months, underscoring its longer-term bearish movement and return uptrend.

NVR’s stock prices remained almost flat in the trading session following the release of its better-than-expected Q2 results on Jul. 23. The company’s homebuilding revenues remained flat compared to the year-ago quarter, coming in at $2.5 billion and exceeding the Street’s expectations by 6.1%. Due to rising costs, homebuilding margins continued to face pressure. Meanwhile, the company’s mortgage segment’s income dropped due to lower mortgage banking fees and interest income.

The company’s overall net income dropped 16.8% year-over-year to $333.7 million, but its EPS of $108.54 surpassed the consensus estimates by a modest 3.5%.

When compared to its peer, NVR has significantly underperformed PulteGroup, Inc.’s (PHM) 22.9% surge on a YTD basis and 4.4% decline over the past 52 weeks.

Among the seven analysts covering the NVR stock, the consensus rating is a “Hold.” Its mean price target of $8,350 suggests a modest 1.7% upside potential from current price levels.