3 Stocks Pushing The Materials & Construction Industry Higher

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 up today with the Dow Jones Industrial Average ( ^DJI) trading down 17 points (-0.1%) at 12,949 as of Tuesday, Nov. 27, 2012, 11:49 AM ET. The NYSE advances/declines ratio sits at 1,707 issues advancing vs. 1,183 declining with 148 unchanged.

The Materials & Construction industry currently sits up 0.3% versus the S&P 500, which is up 0.0%. Top gainers within the industry include Apogee ( APOG), up 5.1%, Texas Industries ( TXI), up 3.5%, USG ( USG), up 1.1% and Chicago Bridge & Iron Company ( CBI), up 0.8%. On the negative front, top decliners within the industry include Louisiana-Pacific ( LPX), down 3.1%, and NVR ( NVR), down 0.7%.

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

3. Gafisa ( GFA) is one of the companies pushing the Materials & Construction industry higher today. As of noon trading, Gafisa is up $0.13 (3.5%) to $3.81 on average volume Thus far, 1.0 million shares of Gafisa exchanged hands as compared to its average daily volume of 2.7 million shares. The stock has ranged in price between $3.75-$3.84 after having opened the day at $3.77 as compared to the previous trading day's close of $3.68.

Gafisa S.A. operates as a homebuilder in Brazil. Gafisa has a market cap of $815.6 million and is part of the industrial goods sector. The company has a P/E ratio of 153.2, above the S&P 500 P/E ratio of 17.7. Shares are down 17.8% year to date as of the close of trading on Monday. Currently there are 2 analysts that rate Gafisa a buy, 1 analyst rates it a sell, and none rate it a hold.

TheStreet Ratings rates Gafisa as a sell. The company's weaknesses can be seen in multiple areas, such as its poor profit margins, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share. Get the full Gafisa Ratings Report now.

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2. As of noon trading, McDermott International ( MDR) is up $0.14 (1.3%) to $10.73 on light volume Thus far, 556,559 shares of McDermott International exchanged hands as compared to its average daily volume of 3.2 million shares. The stock has ranged in price between $10.52-$10.76 after having opened the day at $10.57 as compared to the previous trading day's close of $10.59.

McDermott International, Inc. operates as an engineering, procurement, construction, and installation (EPCI) company worldwide. It focuses on designing and executing complex offshore oil and gas projects. McDermott International has a market cap of $2.5 billion and is part of the industrial goods sector. The company has a P/E ratio of 16.6, below the S&P 500 P/E ratio of 17.7. Shares are up 17.8% year to date as of the close of trading on Monday. Currently there are 13 analysts that rate McDermott International a buy, 1 analyst rates it a sell, and 1 rates it a hold.

TheStreet Ratings rates McDermott International as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, a generally disappointing performance in the stock itself and poor profit margins. Get the full McDermott International Ratings Report now.

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1. As of noon trading, DR Horton ( DHI) is up $0.25 (1.3%) to $19.75 on light volume Thus far, 2.3 million shares of DR Horton exchanged hands as compared to its average daily volume of 6.5 million shares. The stock has ranged in price between $19.41-$19.89 after having opened the day at $19.43 as compared to the previous trading day's close of $19.50.

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 $6.3 billion and is part of the industrial goods sector. The company has a P/E ratio of 6.5, below the S&P 500 P/E ratio of 17.7. Shares are up 54.9% year to date as of the close of trading on Monday. Currently there are 5 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, solid stock price performance, compelling growth in net income, notable return on equity and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full DR Horton Ratings Report now.

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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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