3 Stocks Pushing The Materials & Construction Industry Higher

TheStreet Ratings group would like to highlight 3 stocks pushing the materials & construction industry higher today, Nov. 16, 2012.

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

Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading up 40 points (0.3%) at 12,582 as of Friday, Nov. 16, 2012, 11:59 AM ET. The NYSE advances/declines ratio sits at 1,549 issues advancing vs. 1,392 declining with 99 unchanged.

The Materials & Construction industry currently sits down 0.5% versus the S&P 500, which is down 0.1%. Top gainers within the industry include Toll Brothers ( TOL), up 1.6%, Lennar Corporation ( LEN), up 1.2%, PulteGroup ( PHM), up 1.0% and DR Horton ( DHI), up 0.7%. On the negative front, top decliners within the industry include Foster Wheeler ( FWLT), down 3.3%, James Hardie Industries ( JHX), down 2.1% and Vulcan Materials Company ( VMC), down 1.3%.

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

3. Republic Services ( RSG) is one of the companies pushing the Materials & Construction industry higher today. As of noon trading, Republic Services is up $0.18 (0.7%) to $26.80 on average volume Thus far, 1.4 million shares of Republic Services exchanged hands as compared to its average daily volume of 2.3 million shares. The stock has ranged in price between $26.60-$26.90 after having opened the day at $26.68 as compared to the previous trading day's close of $26.62.

Republic Services, Inc. provides non-hazardous solid waste collection, transfer, and disposal services for commercial, industrial, municipal, and residential customers in the United States and Puerto Rico. Republic Services has a market cap of $9.7 billion and is part of the industrial goods sector. The company has a P/E ratio of 15.5, below the S&P 500 P/E ratio of 17.7. Shares are down 3.4% year to date as of the close of trading on Thursday. Currently there are 2 analysts that rate Republic Services a buy, no analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates Republic Services as a buy. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Republic Services Ratings Report now.

2. As of noon trading, Masco Corporation ( MAS) is up $0.23 (1.6%) to $14.64 on average volume Thus far, 2.2 million shares of Masco Corporation exchanged hands as compared to its average daily volume of 5.4 million shares. The stock has ranged in price between $14.41-$14.80 after having opened the day at $14.48 as compared to the previous trading day's close of $14.41.

Masco Corporation manufactures, distributes, and installs home improvement and building products primarily in North America and Europe. Masco Corporation has a market cap of $5.3 billion and is part of the industrial goods sector. The company has a P/E ratio of -10.5, below the S&P 500 P/E ratio of 17.7. Shares are up 42.1% year to date as of the close of trading on Thursday. Currently there are 2 analysts that rate Masco Corporation a buy, 2 analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates Masco Corporation as a hold. Among the primary strengths of the company is its solid stock price performance. At the same time, however, we also find weaknesses including unimpressive growth in net income, disappointing return on equity and weak operating cash flow. Get the full Masco Corporation Ratings Report now.

1. As of noon trading, Sherwin-Williams Company ( SHW) is up $1.19 (0.8%) to $150.10 on average volume Thus far, 504,001 shares of Sherwin-Williams Company exchanged hands as compared to its average daily volume of 951,500 shares. The stock has ranged in price between $147.70-$150.53 after having opened the day at $148.01 as compared to the previous trading day's close of $148.91.

The Sherwin-Williams Company engages in the development, manufacture, distribution, and sale of paints, coatings, and related products to professional, industrial, commercial, and retail customers primarily in North and South America, the Caribbean region, Europe, and Asia. Sherwin-Williams Company has a market cap of $15.4 billion and is part of the industrial goods sector. The company has a P/E ratio of 27.0, above the S&P 500 P/E ratio of 17.7. Shares are up 66.8% year to date as of the close of trading on Thursday. Currently there are 3 analysts that rate Sherwin-Williams Company a buy, 1 analyst rates it a sell, and 10 rate it a hold.

TheStreet Ratings rates Sherwin-Williams Company as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, expanding profit margins, good cash flow from operations and compelling growth in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full Sherwin-Williams Company 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.

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