This Large Cap Value mutual fund only earns a 3-star rating from Morningstar. However, the fund earns a Very Attractive rating, which is based on the true drivers of fund performance.
With impressive profitability and a significantly undervalued share price, this firm earns a spot in January’s Most Attractive Stocks Model Portfolio and is this week’s Long Idea.
Despite consistent profits and improving margins, this stock’s valuation does not reflect the potential for future profit growth and now holds significant upside potential.
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.
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.