Toll Brothers Inc (TOL): Today's Featured Industrial Goods 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 Industrial Goods sector lower today making it today's featured Industrial Goods laggard. The sector as a whole closed the day up 0.1%. By the end of trading, Toll Brothers fell 77 cents (-2.4%) to $31.99 on average volume. Throughout the day, 4.1 million shares of Toll Brothers exchanged hands as compared to its average daily volume of 3.2 million shares. The stock ranged in price between $31.15-$32.64 after having opened the day at $32.53 as compared to the previous trading day's close of $32.76. Other companies within the Industrial Goods sector that declined today were: Adept Technology ( ADEP), down 24.1%, Intellicheck Mobilisa ( IDN), down 19.2%, Xinyuan Real Estate ( XIN), down 12.7%, and Metalico ( MEA), down 9.5%.
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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 $5.57 billion and is part of the materials & construction industry. The company has a P/E ratio of 61.3, above the S&P 500 P/E ratio of 17.7. Shares are up 60.5% 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, compelling growth in net income, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, Hallwood Group ( HWG), up 68.6%, Renewable Energy Trade Board ( EBOD), up 11.7%, India Globalization Capital ( IGC), up 10.2%, and eMagin Corporation ( EMAN), up 8.7%, were all gainers within the industrial goods sector with Terex ( TEX) being today's featured industrial goods sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the industrial goods sector could consider Industrial Select Sector SPDR ( XLI) while those bearish on the industrial goods sector could consider ProShares Short Dow 30 ( DOG).

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