Toll Brothers Inc (TOL): 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.

Toll Brothers ( TOL) pushed the Materials & Construction industry lower today making it today's featured Materials & Construction laggard. The industry as a whole closed the day up 1.7%. By the end of trading, Toll Brothers fell 81 cents (-2.4%) to $33.01 on average volume. Throughout the day, 3.5 million shares of Toll Brothers exchanged hands as compared to its average daily volume of 3.1 million shares. The stock ranged in price between $32.69-$34.52 after having opened the day at $34.10 as compared to the previous trading day's close of $33.82. Other companies within the Materials & Construction industry that declined today were: Real Goods Solar ( RSOL), down 10.5%, Pure Cycle Corporation ( PCYO), down 3.8%, India Globalization Capital ( IGC), down 3.5%, and Veolia Environnement ( VE), down 3.3%.
  • 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.

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 $5.69 billion and is part of the industrial goods sector. The company has a P/E ratio of 62.6, below the average materials & construction industry P/E ratio of 63.8 and above the S&P 500 P/E ratio of 17.7. Shares are up 65.6% year to date as of the close of trading on Tuesday. 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, solid stock price performance, good cash flow from operations 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 positive front, Clean Harbors ( CLH), up 18%, Great Lakes Dredge & Dock Corporation ( GLDD), up 11.2%, Quanta Services ( PWR), up 9.9%, and Eagle Materials ( EXP), up 9.8%, were all gainers within the materials & construction industry with Sherwin-Williams Company ( SHW) being today's featured materials & construction industry leader.

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

More from Markets

Global Stocks Slide as Trump's New Trade War Salvo Ignites Fresh Concern

Global Stocks Slide as Trump's New Trade War Salvo Ignites Fresh Concern

Ackman Investment Buoys Lowe's; DraftKings Responds to FanDuel Merger -- ICYMI

Ackman Investment Buoys Lowe's; DraftKings Responds to FanDuel Merger -- ICYMI

Replay: Jim Cramer on the Markets, Tiffany, Micron Technology and Union Pacific

Replay: Jim Cramer on the Markets, Tiffany, Micron Technology and Union Pacific

Carnival CEO Arnold Donald: China Will Become the Largest Cruise Market

Carnival CEO Arnold Donald: China Will Become the Largest Cruise Market

Red Robin Slumps After Earnings Miss

Red Robin Slumps After Earnings Miss