5 Stocks Pushing The Industrial Goods Sector 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 20 points (-0.2%) at 12,795 as of Monday, Nov. 12, 2012, 11:49 AM ET. The NYSE advances/declines ratio sits at 1,283 issues advancing vs. 1,555 declining with 129 unchanged.

The Industrial Goods sector currently sits down 0.3% versus the S&P 500, which is down 0.1%. On the negative front, top decliners within the sector include James Hardie Industries ( JHX), down 3.0%, Nidec Corporation ( NJ), down 2.3% and Fastenal Company ( FAST), down 1.0%.

TheStreet Ratings group would like to highlight 5 stocks pushing the sector lower today:

5. Toll Brothers ( TOL) is one of the companies pushing the Industrial Goods sector lower today. As of noon trading, Toll Brothers is down $0.59 (-1.8%) to $31.40 on average volume Thus far, 1.3 million shares of Toll Brothers exchanged hands as compared to its average daily volume of 3.2 million shares. The stock has ranged in price between $31.20-$32.68 after having opened the day at $32.20 as compared to the previous trading day's close of $31.99.

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 $5.5 billion and is part of the materials & construction industry. The company has a P/E ratio of 60.7, above the S&P 500 P/E ratio of 17.7. Shares are up 56.7% year to date as of the close of trading on Friday. Currently there are 7 analysts that rate Toll Brothers a buy, 3 analysts rate it a sell, and 6 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. Get the full Toll Brothers Ratings Report now.

4. As of noon trading, Raytheon Company ( RTN) is down $0.76 (-1.4%) to $55.30 on light volume Thus far, 552,624 shares of Raytheon Company exchanged hands as compared to its average daily volume of 1.8 million shares. The stock has ranged in price between $55.30-$56.23 after having opened the day at $55.59 as compared to the previous trading day's close of $56.06.

Raytheon Company designs, develops, manufactures, integrates, and supports technological products, services, and solutions for governmental and commercial customers in the United States and internationally. Raytheon Company has a market cap of $18.2 billion and is part of the aerospace/defense industry. The company has a P/E ratio of 9.4, below the S&P 500 P/E ratio of 17.7. Shares are up 15.9% year to date as of the close of trading on Friday. Currently there are 6 analysts that rate Raytheon Company a buy, 1 analyst rates it a sell, and 11 rate it a hold.

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

3. As of noon trading, DR Horton ( DHI) is down $0.60 (-2.9%) to $20.00 on heavy volume Thus far, 6.1 million shares of DR Horton exchanged hands as compared to its average daily volume of 6.1 million shares. The stock has ranged in price between $19.66-$21.36 after having opened the day at $21.25 as compared to the previous trading day's close of $20.60.

D.R. Horton, Inc. operates as a homebuilding company in the United States. The company's Homebuilding segment engages in the acquisition and development of land, and construction and sale of residential homes in 25 states and 73 markets in the United States primarily under the D.R. DR Horton has a market cap of $6.7 billion and is part of the materials & construction industry. The company has a P/E ratio of 8.1, below the S&P 500 P/E ratio of 17.7. Shares are up 66.3% year to date as of the close of trading on Friday. Currently there are 4 analysts that rate DR Horton a buy, 3 analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates DR Horton as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, solid stock price performance and compelling growth in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full DR Horton Ratings Report now.

2. As of noon trading, Lennar Corporation ( LEN) is down $1.20 (-3.1%) to $36.92 on average volume Thus far, 2.4 million shares of Lennar Corporation exchanged hands as compared to its average daily volume of 5.0 million shares. The stock has ranged in price between $36.81-$38.71 after having opened the day at $38.35 as compared to the previous trading day's close of $38.11.

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 $6.1 billion and is part of the materials & construction industry. The company has a P/E ratio of 14.2, below the S&P 500 P/E ratio of 17.7. Shares are up 95.5% year to date as of the close of trading on Friday. Currently there are 7 analysts that rate Lennar Corporation a buy, 2 analysts rate it a sell, and 8 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, compelling growth in net income and impressive record of earnings per share growth. 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 Lennar Corporation Ratings Report now.

1. As of noon trading, PulteGroup ( PHM) is down $0.30 (-1.8%) to $16.50 on average volume Thus far, 5.1 million shares of PulteGroup exchanged hands as compared to its average daily volume of 13.7 million shares. The stock has ranged in price between $16.35-$17.24 after having opened the day at $16.86 as compared to the previous trading day's close of $16.80.

PulteGroup, Inc., through its subsidiaries, engages in homebuilding and financial services businesses primarily in the United States. PulteGroup has a market cap of $6.7 billion and is part of the materials & construction industry. The company has a P/E ratio of 41.4, above the S&P 500 P/E ratio of 17.7. Shares are up 175.3% year to date as of the close of trading on Friday. Currently there are 8 analysts that rate PulteGroup a buy, 1 analyst rates it a sell, and 6 rate it a hold.

TheStreet Ratings rates PulteGroup as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, premium valuation and poor profit margins. Get the full PulteGroup Ratings Report now.

If you are interested in one of these 5 stocks, 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).

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.

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