This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House
EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stock Under $10 that he thinks could potentially double or triple in the next 6 to 12-months. See what he's trading today with a 14-day FREE pass.

3 Stocks Driving The Materials & Construction Industry Higher

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 26 points (0.2%) at 16,807 as of Tuesday, June 17, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,847 issues advancing vs. 1,167 declining with 138 unchanged.

The Materials & Construction industry as a whole closed the day up 0.4% versus the S&P 500, which was up 0.2%. Top gainers within the Materials & Construction industry included Industrial Services of America ( IDSA), up 15.9%, TRC Companies ( TRR), up 6.6%, Goldfield ( GV), up 3.5%, United States Lime & Minerals ( USLM), up 1.9% and Xinyuan Real Estate ( XIN), up 3.2%.

TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today:

Xinyuan Real Estate ( XIN) is one of the companies that pushed the Materials & Construction industry higher today. Xinyuan Real Estate was up $0.13 (3.2%) to $4.15 on light volume. Throughout the day, 154,100 shares of Xinyuan Real Estate exchanged hands as compared to its average daily volume of 257,000 shares. The stock ranged in a price between $4.04-$4.19 after having opened the day at $4.04 as compared to the previous trading day's close of $4.02.

Xinyuan Real Estate Co., Ltd., together with its subsidiaries, develops residential real estate properties for middle-income consumers, primarily focusing on selected Tier II and III cities in China. Xinyuan Real Estate has a market cap of $323.2 million and is part of the industrial goods sector. Shares are down 24.9% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Xinyuan Real Estate a buy, no analysts rate it a sell, and none rate it a hold.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings rates Xinyuan Real Estate as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

Highlights from TheStreet Ratings analysis on XIN go as follows:

  • The revenue growth greatly exceeded the industry average of 41.2%. Since the same quarter one year prior, revenues rose by 33.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Even though the current debt-to-equity ratio is 1.04, it is still below the industry average, suggesting that this level of debt is acceptable within the Real Estate Management & Development industry. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.95 is weak.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Real Estate Management & Development industry and the overall market on the basis of return on equity, XINYUAN REAL ESTATE CO -ADR has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • The share price of XINYUAN REAL ESTATE CO -ADR has not done very well: it is down 7.66% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Looking ahead, although the push and pull of the overall market trend could certainly make a critical difference, we do not see any strong reason stemming from the company's fundamentals that would cause a continuation of last year's decline. In fact, the stock is now selling for less than others in its industry in relation to its current earnings.

You can view the full analysis from the report here: Xinyuan Real Estate Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
Submit an article to us!
DOW 17,156.85 +24.88 0.15%
S&P 500 2,001.57 +2.59 0.13%
NASDAQ 4,562.1890 +9.43 0.21%

Brokerage Partners

Top Rated Stocks Top Rated Funds Top Rated ETFs