Lennar Corporation (LEN): Today's Featured Materials & Construction Winner

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.

Lennar Corporation ( LEN) pushed the Materials & Construction industry higher today making it today's featured materials & construction winner. The industry as a whole closed the day up 0.8%. By the end of trading, Lennar Corporation rose 67 cents (1.9%) to $36.26 on average volume. Throughout the day, five million shares of Lennar Corporation exchanged hands as compared to its average daily volume of 5.3 million shares. The stock ranged in a price between $35.47-$36.68 after having opened the day at $35.58 as compared to the previous trading day's close of $35.59. Other companies within the Materials & Construction industry that increased today were: MagneGas Corporation ( MNGA), up 9.4%, China Advanced Construction Materials Group ( CADC), up 7.3%, Beazer Homes USA ( BZH), up 6.2%, and Ryland Group ( RYL), up 5.7%.
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Lennar Corporation, together with its subsidiaries, engages in homebuilding, financial services, and real estate businesses in the United States. Lennar Corporation has a market cap of $5.68 billion and is part of the industrial goods sector. The company has a P/E ratio of 14.9, below the average materials & construction industry P/E ratio of 15 and below the S&P 500 P/E ratio of 17.7. Shares are up 81.1% year to date as of the close of trading on Tuesday. Currently there are seven analysts that rate Lennar Corporation a buy, one analyst rates it a sell, and eight rate it a hold.

TheStreet Ratings rates Lennar Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, solid stock price performance, impressive record of earnings per share growth and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the negative front, Real Goods Solar ( RSOL), down 9.7%, Sharps Compliance Corporation ( SMED), down 5.5%, Aegion ( AEGN), down 2.7%, and PGT ( PGTI), down 2.4%, were all laggards within the materials & construction industry with Waste Management ( WM) being today's materials & construction industry laggard.

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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