KB Home (KBH): Today's Featured Materials & Construction 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 Materials & Construction industry lower today making it today's featured Materials & Construction laggard. The industry as a whole closed the day up 0.3%. By the end of trading, KB Home fell 16 cents (-1.1%) to $14.44 on light volume. Throughout the day, four million shares of KB Home exchanged hands as compared to its average daily volume of 6.7 million shares. The stock ranged in price between $14.20-$14.64 after having opened the day at $14.58 as compared to the previous trading day's close of $14.60. Other companies within the Materials & Construction industry that declined today were: Avalon Holdings ( AWX), down 6.3%, Patrick Industries ( PATK), down 3.7%, Pure Cycle Corporation ( PCYO), down 3.6%, and Gafisa ( GFA), down 2.6%.
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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 $1.12 billion and is part of the industrial goods sector. The company has a P/E ratio of -21.3, below the S&P 500 P/E ratio of 17.7. Shares are up 115.6% 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, Guanwei Recycling ( GPRC), up 11.3%, Heckmann ( HEK), up 5.2%, Orion Marine Group ( ORN), up 5%, and Integrated Electrical Services ( IESC), up 3.8%, were all gainers within the materials & construction industry with Hovnanian ( HOV) being today's featured materials & construction industry leader.

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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