DR Horton Inc (DHI): Today's Featured Materials & Construction Laggard

DR Horton ( DHI) pushed the Materials & Construction industry lower today making it today's featured Materials & Construction laggard. The industry as a whole closed the day up 0.4%. By the end of trading, DR Horton fell 22 cents (-1.2%) to $18.11 on light volume. Throughout the day, 5.2 million shares of DR Horton exchanged hands as compared to its average daily volume of 7.7 million shares. The stock ranged in price between $17.90-$18.45 after having opened the day at $18.38 as compared to the previous trading day's close of $18.33. Other companies within the Materials & Construction industry that declined today were: Guanwei Recycling ( GPRC), down 24.1%, Real Goods Solar ( RSOL), down 8.3%, Nobility Homes ( NOBH), down 4.7%, and Comstock ( CHCI), down 4%.

D.R. Horton, Inc. operates as a homebuilding company in the United States. The company's Homebuilding segment engages in the acquisition and development of land, and construction and sale of residential homes in 25 states and 73 markets in the United States primarily under the D.R. DR Horton has a market cap of $5.76 billion and is part of the industrial goods sector. The company has a P/E ratio of seven, equal to the average materials & construction industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 43.5% year to date as of the close of trading on Tuesday. Currently there are five analysts that rate DR Horton a buy, two analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates DR Horton as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, compelling growth in net income, notable return on equity and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, Integrated Electrical Services ( IESC), up 13.2%, Energy Solutions ( ES), up 7.8%, Dycom Industries ( DY), up 4.6%, and India Globalization Capital ( IGC), up 4.5%, were all gainers within the materials & construction industry with Fastenal Company ( FAST) being today's featured materials & construction industry leader.

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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