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 0.2%. By the end of trading, Lennar Corporation rose 45 cents (1.2%) to $38.20 on light volume. Throughout the day, 3.5 million shares of Lennar Corporation exchanged hands as compared to its average daily volume of 5.1 million shares. The stock ranged in a price between $37.72-$38.55 after having opened the day at $37.91 as compared to the previous trading day's close of $37.75. Other companies within the Materials & Construction industry that increased today were: India Globalization Capital ( IGC), up 9.4%, Patrick Industries ( PATK), up 7.7%, China Advanced Construction Materials Group ( CADC), up 5.1%, and Integrated Electrical Services ( IESC), up 5.1%.
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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 $6.09 billion and is part of the industrial goods sector. The company has a P/E ratio of 14.1, below the average materials & construction industry P/E ratio of 14.2 and below the S&P 500 P/E ratio of 17.7. Shares are up 94.3% year to date as of the close of trading on Tuesday. Currently there are seven analysts that rate Lennar Corporation a buy, two analysts rate 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 robust revenue growth, notable return on equity, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. 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, Heckmann ( HEK), down 9.1%, Real Goods Solar ( RSOL), down 8.2%, Avalon Holdings ( AWX), down 7.3%, and Sharps Compliance Corporation ( SMED), down 5.1%, were all laggards within the materials & construction industry with Chicago Bridge & Iron Company ( CBI) 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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