NVR - NVR: New Orders And Average Selling Prices Are Declining
Last quarter, when NVR (NVR) reported its third quarter earnings, I discussed the pressure from leading homebuilding indicators and my plan to stay on the sidelines. At this point, we see that leading indicators were right indeed. Even though fourth quarter sales were up 10%, we are seeing serious cracks in the fundamental picture from both falling new orders and average selling prices. I am, therefore, once again reiterating my call to stay on the sidelines, even though it seems (from a technical perspective) that the stock may have bottomed.
Source: AnnualReports.com