Hovnanian Enterprises Inc (HOV): 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.

Hovnanian ( HOV) pushed the Materials & Construction industry higher today making it today's featured materials & construction winner. The industry as a whole closed the day down 1.5%. By the end of trading, Hovnanian rose 19 cents (3.6%) to $5.50 on heavy volume. Throughout the day, 15.4 million shares of Hovnanian exchanged hands as compared to its average daily volume of 6.6 million shares. The stock ranged in a price between $5.01-$5.59 after having opened the day at $5.20 as compared to the previous trading day's close of $5.31. Other companies within the Materials & Construction industry that increased today were: Comstock ( CHCI), up 6.1%, China Advanced Construction Materials Group ( CADC), up 5.9%, Dycom Industries ( DY), up 5.3%, and Veolia Environnement ( VE), up 3.8%.
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Hovnanian Enterprises, Inc. designs, constructs, markets, and sells residential homes in the United States. It constructs single-family attached and detached homes, attached townhomes and condominiums, and urban infill and active adult homes. Hovnanian has a market cap of $596.4 million and is part of the industrial goods sector. The company has a P/E ratio of -6.5, below the S&P 500 P/E ratio of 17.7. Shares are up 249.7% year to date as of the close of trading on Tuesday. Currently there is one analyst that rates Hovnanian a buy, four analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates Hovnanian as a sell. Among the areas we feel are negative, one of the most important has been poor profit margins.

On the negative front, LSB Industries ( LXU), down 8.5%, TRC Companies ( TRR), down 7%, MagneGas Corporation ( MNGA), down 6.6%, and PGT ( PGTI), down 6.1%, were all laggards within the materials & construction industry with Cemex S.A.B. de C.V ( CX) 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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