3 Stocks Pushing The Materials & Construction Industry Lower

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

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 266 points (-2.0%) at 12,979 as of Wednesday, Nov. 7, 2012, 2:19 PM ET. The NYSE advances/declines ratio sits at 512 issues advancing vs. 2,488 declining with 87 unchanged.

The Materials & Construction industry currently sits down 1.4% versus the S&P 500, which is down 1.9%. On the negative front, top decliners within the industry include Vulcan Materials Company ( VMC), down 4.0%, Chicago Bridge & Iron Company ( CBI), down 2.3%, Fluor Corporation ( FLR), down 2.3%, Fastenal Company ( FAST), down 1.1% and Cemex S.A.B. de C.V ( CX), down 0.7%.

TheStreet Ratings group would like to highlight 3 stocks pushing the industry lower today:

3. LSB Industries ( LXU) is one of the companies pushing the Materials & Construction industry lower today. As of noon trading, LSB Industries is down $4.59 (-11.0%) to $37.26 on heavy volume Thus far, 276,916 shares of LSB Industries exchanged hands as compared to its average daily volume of 140,100 shares. The stock has ranged in price between $37.15-$41.08 after having opened the day at $40.60 as compared to the previous trading day's close of $41.85.

LSB Industries, Inc., through its subsidiaries, engages in the manufacture and sale of geothermal and water source heat pumps, air handling products, and chemical products. The company operates in two segments, Climate Control Business and Chemical Business. LSB Industries has a market cap of $909.6 million and is part of the industrial goods sector. The company has a P/E ratio of 12.8, below the S&P 500 P/E ratio of 17.7. Shares are up 45.1% year to date as of the close of trading on Tuesday. Currently there are 3 analysts that rate LSB Industries a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates LSB Industries as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full LSB Industries Ratings Report now.

2. As of noon trading, MDU Resources Group ( MDU) is down $0.69 (-3.2%) to $20.60 on average volume Thus far, 380,997 shares of MDU Resources Group exchanged hands as compared to its average daily volume of 566,400 shares. The stock has ranged in price between $20.41-$21.20 after having opened the day at $21.10 as compared to the previous trading day's close of $21.29.

MDU Resources Group, Inc. operates as a diversified natural resource company in the United States. The company generates, transmits, and distributes electricity, as well as distributes natural gas. MDU Resources Group has a market cap of $4.0 billion and is part of the industrial goods sector. The company has a P/E ratio of 31.1, above the S&P 500 P/E ratio of 17.7. Shares are down 1.4% year to date as of the close of trading on Tuesday. Currently there are 3 analysts that rate MDU Resources Group a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates MDU Resources Group as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and poor profit margins. Get the full MDU Resources Group Ratings Report now.

1. As of noon trading, Waste Management ( WM) is down $0.20 (-0.6%) to $32.03 on average volume Thus far, 1.9 million shares of Waste Management exchanged hands as compared to its average daily volume of 3.3 million shares. The stock has ranged in price between $31.95-$32.16 after having opened the day at $32.02 as compared to the previous trading day's close of $32.23.

Waste Management, Inc., through its subsidiaries, provides waste management services to residential, commercial, industrial, and municipal customers in North America. It offers collection, transfer, recycling, and disposal services. Waste Management has a market cap of $15.0 billion and is part of the industrial goods sector. The company has a P/E ratio of 17.4, below the S&P 500 P/E ratio of 17.7. Shares are down 1.5% year to date as of the close of trading on Tuesday. Currently there are no analysts that rate Waste Management a buy, 3 analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates Waste Management as a buy. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, increase in stock price during the past year 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. Get the full Waste Management Ratings Report now.

If you are interested in one of these 3 stocks, 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).

A reminder about TheStreet Ratings group: 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.

null

More from Markets

Daimler Slumps After Profit Warning Cites 'Import Tariffs' in US-China Trade War

Daimler Slumps After Profit Warning Cites 'Import Tariffs' in US-China Trade War

Oil Prices Slide as Saudi Energy Minister Suggests OPEC Output Deal Imminent

Oil Prices Slide as Saudi Energy Minister Suggests OPEC Output Deal Imminent

Global Stocks Mixed, Dollar Firm as Trade Tensions Keep Investors Cautious

Global Stocks Mixed, Dollar Firm as Trade Tensions Keep Investors Cautious

FTC Chair Says Agency Is Ready to Take on Big Tech; Walgreens Joins Dow -- ICYMI

FTC Chair Says Agency Is Ready to Take on Big Tech; Walgreens Joins Dow -- ICYMI

Dow Gets Swept Into Nasty Reversal Even as Nasdaq Posts New Record

Dow Gets Swept Into Nasty Reversal Even as Nasdaq Posts New Record