Based on the aggregated intelligence of 145,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, homebuilder NVR (NYSE:NVR) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at NVR's business and see what CAPS investors are saying about the stock right now.

NVR facts

Headquarters (Founded)

Reston, Va. (1979)

Market Cap

$4.21 billion



Trailing-12-Month Revenue

$2.92 billion


CEO Paul Saville (since 2005)
CFO Dennis Seremet (since 2005)

Trailing-12-Month Return on Equity


Cash / Debt

$1.37 billion / $211.27 million

1-Year Return



D.H. Horton (NYSE:DHI)
Pulte Homes (NYSE:PHM)

CAPS Members Bearish on NVR Also Bearish on

Ryland Group (NYSE:RYL)
Lennar (NYSE:LEN)

CAPS Members Bullish on NVR Also Bullish on

General Electric (NYSE:GE)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 72% of the 227 All-Star members who have rated NVR believe the stock will underperform the S&P 500 going forward. These bears include cecamado1 and jed71, both of whom are ranked in the top 10% of our community.

Late last year, cecamado1 had a skeptical attitude towards the stock: "[W]ith high unemployment, how do you expect people to buy houses or hold onto their mortgages? Because of tax credit, numbers are looking decent, but we'll be back to normal in no time... Short this!"

In a pitch from last week, jed71 built on that bearishness:

NVR's stock price has gotten way ahead of itself. As much as I would like to believe the housing and mortgage crisis is over, that's a major pipe dream.

NVR is a well run company and has a history of significant share buy backs that have very effectively boosted the stock price. At one point, the company had shown some interest in taking the company private to the BENEFIT of shareholders (which rarely happens). At this juncture, there is absolutely no way that will happen.

Insiders have recently been dumping bunches of shares, which definitely has me concerned. ... Although I do not believe the company will go out of business, it is highly unlikely they will continue to outperform the broader market in the near term.

What do you think about NVR, or any other stock for that matter? If you want to retire rich, you need to protect your portfolio from any undue risk. Staying away from dangerous stocks is crucial to securing your financial future, and on Motley Fool CAPS, thousands of investors are working every day to flag them. CAPS is 100% free, so get started!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Apple is a Motley Fool Stock Advisor pick. The Fool's disclosure policy always gets a perfect score.