CEO David Trainer sat down with Chuck Jaffe of Money Life and to talk about our Danger Zone pick this past week: The Danger Zone Itself and our Focus List (Short) Model Portfolio.
With a track record of high profitability, significant growth opportunities, and a cheap valuation, this stock could offer significant upside for investors.
Following a 59% gain, driven by strong earnings beats, NVR now receives an Attractive risk/reward rating. Despite the price increase and rating downgrade, the stock still remains undervalued.
We appreciate Morningstar (MORN) taking the time to answer our article. Rather than go point by point through Morningstar’s rebuttal, we just want to follow up with a few unanswered questions.
This firm moved to bolster its position within its market by acquiring a competitor in 2016, but it paid too high a price. The expected synergies from the deal have not come to fruition and the profitability of the combined firm has fallen instead of rising.
This firm has a long history of profit growth, over four decades of dividend growth, and an executive compensation plan that properly incentivizes executives to create shareholder value. Add in a cheap valuation, and it’s clear why this firm is this week’s Long Idea.