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

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 lower today making it today's featured Materials & Construction laggard. The industry as a whole closed the day down 0.8%. By the end of trading, Lennar Corporation fell 49 cents (-1.4%) to $34.77 on light volume. Throughout the day, 3.6 million shares of Lennar Corporation exchanged hands as compared to its average daily volume of 5.2 million shares. The stock ranged in price between $34.68-$35.18 after having opened the day at $35.01 as compared to the previous trading day's close of $35.26. Other companies within the Materials & Construction industry that declined today were: India Globalization Capital ( IGC), down 5.7%, Deltic Timber Corporation ( DEL), down 4.8%, TRC Companies ( TRR), down 4.6%, and A V Homes ( AVHI), down 4.3%.
  • ACTIVE STOCK TRADERS: Get full access to Jim Cramer's thoughts for less than $3/week - sometimes before he says them on TV! Start with a 14-Day Free Trial.

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 $5.47 billion and is part of the industrial goods sector. The company has a P/E ratio of 12.8, below the average materials & construction industry P/E ratio of 12.9 and below the S&P 500 P/E ratio of 17.7. Shares are up 76.3% year to date as of the close of trading on Thursday. Currently there are seven analysts that rate Lennar Corporation a buy, one analyst rates it a sell, and 10 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.

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).

FREE from Real Money's Jim Cramer: Winners and Losers Election 2012 - Steps to take NOW so you can profit no matter who is in charge! Free download now.
null

If you liked this article you might like

With the Fed, It's Different This Time

These Stocks Are Ready to Reverse Course

Barclays Turns Cautious on U.S. Home Building

I'm Still Sold on Homebuilders