NVR Inc. at a Critical Support Zone – Bearish OutlookNVR Inc. (NYSE: NVR) is currently trading at a crucial technical level, and my outlook remains bearish until the stock approaches the $7,000 zone. This level represents a key confluence of an ascending trendline and the 6,8% Fibonacci retracement, making it a significant psychological and technical support area.
After reaching an all-time high (ATH) of $10,000 in October 2024, NVR has since declined by approximately 27%, reflecting a notable correction. Given this trend, traders should closely monitor price action around the $7,000 mark for potential support and reversal signals.
As always, exercise caution and apply risk management strategies when trading this asset.
NVR
Warren Buffet buying homebuilders after huge runsNot sure what NYSE:BRK.A NYSE:BRK.B is thinking, Warren Buffet.
Is he expecting a huge demand for NEW HOMES?
There was increase in demand after large drop.
Maybe thinking that the Fed reduces #interestrates after things begin to crack, more?
TVC:TNX has been pumping (10 Yr), no signs of weakness.
They've all had huge runs NYSE:DHI NYSE:NVR NYSE:LEN.B
🤷♂️
#RealEstate
Stocks at OPPORTUNITY Levels!Buenos dias! I am back from a vacation to Panama (the country, not the Redneck Riviera) where I had a refreshing time and I'm ready to hunt for opportunities and share! Many great stocks have pulled back to their 50% Retracement Levels. If you follow my ideas you know that this is my favorite technique for finding opportunities in any instrument.
I use a winner from this year, one of the best stocks of 2022, Coca-Cola NYSE:KO as a proof of concept as it is up over 7% from a second 50% Retracement retest last week. The new opportunities I am finding at these levels are:
NYSE:ACN
NASDAQ:AMAT
NYSE:NVR
NASDAQ:TSLA
NASDAQ:GOOG
Long $NVR $5,900 Price Target 2021Since my last post, I've adjusted my price target to $5,900 per share. Analysts are too conservative and wrong about $NVR and the influence of the unprecedented action from the Fed. That said, my price target has many assumptions baked in including continued low rates through all of 2021, a Trump re-election (extension of the low tax regime) and COVID resolution.
This estimate includes revenues of around ~$8B, net income of ~$1B, around ~$750M spent on repurchases, a float of ~3.4M shares for EPS of around $295 per share next year.
The company has unbelievably high ROA, ROE, ROIC all from a very balanced capital structure. Operating income and hence operating cash flow is the most important characteristic of any business in my view. It's $NVR's ability to continue to produce strong operating cash flow that enables it to repurchase so much stock and enrich existing shareholders by increasing their proportionate equity.
Uptrend on $NVR After some interesting Q1 results discosed on April the 19th, with EPS and net margin topping analysts' forecasts, the stock is now continuing in its uptrend with a trailing support netting higher and higher lows.
RSI on the 4h chart shows an overbought situation but the distance of price to the support line is currently of 16724bps, roughly a 5,7% margin.
***As usual, not a trading advice, merely my idea for informational and educational purposes***