Martin Marietta Materials (MLM): 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.

Martin Marietta Materials ( MLM) pushed the Materials & Construction industry higher today making it today's featured materials & construction winner. The industry as a whole closed the day up 0.2%. By the end of trading, Martin Marietta Materials rose $1.38 (1.7%) to $83.46 on average volume. Throughout the day, 435,515 shares of Martin Marietta Materials exchanged hands as compared to its average daily volume of 461,700 shares. The stock ranged in a price between $82.15-$83.53 after having opened the day at $82.60 as compared to the previous trading day's close of $82.08. Other companies within the Materials & Construction industry that increased today were: Headwaters ( HW), up 7.1%, Griffon Corporation ( GFF), up 5.4%, MYR Group ( MYRG), up 5%, and Primoris Services Corporation ( PRIM), up 4.1%.
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Martin Marietta Materials, Inc., together with its subsidiaries, engages in the production and sale of aggregates for the construction industry primarily in the United States, Canada, the Bahamas, and the Caribbean Islands. Martin Marietta Materials has a market cap of $3.8 billion and is part of the industrial goods sector. The company has a P/E ratio of 66.3, above the average materials & construction industry P/E ratio of 60.1 and above the S&P 500 P/E ratio of 17.7. Shares are up 8.8% year to date as of the close of trading on Monday. Currently there are three analysts that rate Martin Marietta Materials a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Martin Marietta Materials as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and increase in net income. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and poor profit margins.

On the negative front, Gafisa ( GFA), down 8.7%, India Globalization Capital ( IGC), down 8.2%, Patrick Industries ( PATK), down 8.1%, and Apogee ( APOG), down 6.2%, were all laggards within the materials & construction industry with McDermott International ( MDR) 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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