Toll Brothers Inc (TOL): 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.

Toll Brothers ( TOL) pushed the Materials & Construction industry higher today making it today's featured materials & construction winner. The industry as a whole closed the day down 1.3%. By the end of trading, Toll Brothers rose 40 cents (1.1%) to $35.10 on average volume. Throughout the day, 3.1 million shares of Toll Brothers exchanged hands as compared to its average daily volume of 3.2 million shares. The stock ranged in a price between $34.40-$35.51 after having opened the day at $34.56 as compared to the previous trading day's close of $34.70. Other companies within the Materials & Construction industry that increased today were: US Concrete ( USCR), up 11.9%, Xinyuan Real Estate ( XIN), up 10%, Orion Marine Group ( ORN), up 3.6%, and Pope Resources ( POPE), up 2.5%.
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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 $5.79 billion and is part of the industrial goods sector. The company has a P/E ratio of 63.8, below the average materials & construction industry P/E ratio of 65 and above the S&P 500 P/E ratio of 17.7. Shares are up 69.8% year to date as of the close of trading on Thursday. Currently there are seven analysts that rate Toll Brothers a buy, three 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 robust revenue growth, impressive record of earnings per share growth, good cash flow from operations, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins.

On the negative front, Tri-Tech ( TRIT), down 10.9%, Real Goods Solar ( RSOL), down 10%, Pure Cycle Corporation ( PCYO), down 8.7%, and Pike Electric Corporation ( PIKE), down 5.9%, 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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