Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

.

Toll Brothers

(

TOL

) pushed the Materials & Construction industry lower today making it today's featured Materials & Construction laggard. The industry as a whole closed the day down 0.5%. By the end of trading, Toll Brothers fell 39 cents (-1.2%) to $32.62 on average volume. Throughout the day, 4.2 million shares of Toll Brothers exchanged hands as compared to its average daily volume of 3.9 million shares. The stock ranged in price between $32.46-$33.30 after having opened the day at $32.69 as compared to the previous trading day's close of $33.01. Other companies within the Materials & Construction industry that declined today were:

Nobility Homes

(

NOBH

), down 7.7%,

Gafisa

(

GFA

), down 5.5%,

Pure Cycle Corporation

(

PCYO

), down 5.1%, and

Pike Electric Corporation

(

PIKE

), down 3.8%.

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Toll Brothers, Inc., together with its subsidiaries, designs, builds, markets, and arranges finance for single-family detached and attached homes in luxury residential communities. Toll Brothers has a market cap of $5.12 billion and is part of the

industrial goods

sector. The company has a P/E ratio of 75.7, above the average materials & construction industry P/E ratio of 72.8 and above the S&P 500 P/E ratio of 17.7. Shares are up 55.8% year to date as of the close of trading on Wednesday. Currently there are six analysts that rate Toll Brothers a buy, two analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates Toll Brothers as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, solid stock price performance, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the materials & construction industry could consider

SPDR S&P Homebuilders ETF

(

XHB

) while those bearish on the materials & construction industry could consider

ProShares Short Basic Materials Fd

(

SBM

).

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