NVR - Quarterly Update: Analyzing Cavco's Triumph In Affordable Housing

2024-04-09 07:57:59 ET

Summary

• Cavco Industries is a leading producer of manufactured homes in the US, offering affordable alternatives to traditional homebuilders.
• CVCO stock is not as cheap compared to 7 months ago as it surged 40% since my initial coverage, but that doesn't mean this story is over.
• Macroeconomic trends, including a strong economy and declining house affordability, continue to support Cavco's growth prospects.
• I reiterate my "Buy" rating, as I believe the stock will continue appreciating in the medium term.

Introduction

It is time for the quarterly review of one of my favorite companies that I have analyzed here on Seeking Alpha: Cavco Industries ( CVCO ). I first initiated coverage of Cavco Industries on September 19, 2023 , rating the company as a 'Buy.' My subsequent analysis in January upheld this rating, highlighting a resilient economy that, despite enduring higher interest rates, continues to support the housing sector....

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