KB Home (KBH): 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.

KB Home ( KBH) pushed the Industrial Goods sector lower today making it today's featured Industrial Goods laggard. The sector as a whole closed the day down 0.3%. By the end of trading, KB Home fell $1.02 (-6.5%) to $14.67 on average volume. Throughout the day, seven million shares of KB Home exchanged hands as compared to its average daily volume of 6.2 million shares. The stock ranged in price between $14.62-$16.13 after having opened the day at $15.83 as compared to the previous trading day's close of $15.69. Other companies within the Industrial Goods sector that declined today were: Beazer Homes USA ( BZH), down 17.3%, Exide Technologies ( XIDE), down 14%, eMagin Corporation ( EMAN), down 10.5%, and Intellicheck Mobilisa ( IDN), down 9.5%.
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KB Home operates as a homebuilding and financial services company in the United States. KB Home has a market cap of $1.25 billion and is part of the materials & construction industry. The company has a P/E ratio of -23.9, below the S&P 500 P/E ratio of 17.7. Shares are up 141.5% year to date as of the close of trading on Friday. Currently there are three analysts that rate KB Home a buy, three analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates KB Home as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins.

On the positive front, TAT Technologies ( TATT), up 7.1%, Advanced Emissions Solutions ( ADES), up 6.1%, Sherwin-Williams Company ( SHW), up 5.8%, and Caesarstone Sdot-Yam ( CSTE), up 5.8%, were all gainers within the industrial goods sector with Cummins ( CMI) 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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