3 Stocks Pushing The Materials & Construction Industry 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

Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 19 points (-0.1%) at 13,006 as of Monday, Dec. 3, 2012, 11:50 AM ET. The NYSE advances/declines ratio sits at 1,239 issues advancing vs. 1,655 declining with 129 unchanged.

The Materials & Construction industry currently sits up 0.2% versus the S&P 500, which is down 0.1%. A company within the industry that fell today was Universal Forest Products ( UFPI), up 3.1%. Top gainers within the industry include Gafisa ( GFA), up 4.1%, Cemex S.A.B. de C.V ( CX), up 1.7%, PulteGroup ( PHM), up 0.8% and Fluor Corporation ( FLR), up 0.8%.

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

3. Waste Connections ( WCN) is one of the companies pushing the Materials & Construction industry lower today. As of noon trading, Waste Connections is down $0.25 (-0.8%) to $32.67 on average volume Thus far, 353,338 shares of Waste Connections exchanged hands as compared to its average daily volume of 716,700 shares. The stock has ranged in price between $32.54-$33.18 after having opened the day at $33.18 as compared to the previous trading day's close of $32.92.

Waste Connections, Inc., an integrated solid waste services company, provides solid waste collection, transfer, disposal, and recycling services. Waste Connections has a market cap of $4.0 billion and is part of the industrial goods sector. The company has a P/E ratio of 24.1, above the S&P 500 P/E ratio of 17.7. Shares are down 1.8% year to date as of the close of trading on Friday. Currently there are 4 analysts that rate Waste Connections a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Waste Connections as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Waste Connections Ratings Report now.

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2. As of noon trading, NVR ( NVR) is down $5.24 (-0.6%) to $894.60 on average volume Thus far, 17,540 shares of NVR exchanged hands as compared to its average daily volume of 32,400 shares. The stock has ranged in price between $890.00-$904.95 after having opened the day at $904.95 as compared to the previous trading day's close of $899.84.

NVR, Inc. operates as a homebuilder in the United States. NVR has a market cap of $4.4 billion and is part of the industrial goods sector. The company has a P/E ratio of 30.3, above the S&P 500 P/E ratio of 17.7. Shares are up 30.3% year to date as of the close of trading on Friday. Currently there are 2 analysts that rate NVR a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates NVR as a buy. 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, good cash flow from operations, increase in net income and solid stock price performance. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value. Get the full NVR Ratings Report now.

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1. As of noon trading, Chicago Bridge & Iron Company ( CBI) is down $0.15 (-0.4%) to $40.48 on light volume Thus far, 472,277 shares of Chicago Bridge & Iron Company exchanged hands as compared to its average daily volume of 1.4 million shares. The stock has ranged in price between $40.26-$41.71 after having opened the day at $40.95 as compared to the previous trading day's close of $40.63.

Chicago Bridge & Iron Company N.V. provides conceptual design, technology, engineering, procurement, fabrication, construction, and commissioning services to energy and natural resource industries worldwide. Chicago Bridge & Iron Company has a market cap of $3.9 billion and is part of the industrial goods sector. The company has a P/E ratio of 13.9, below the S&P 500 P/E ratio of 17.7. Shares are up 5.8% year to date as of the close of trading on Friday. Currently there are 8 analysts that rate Chicago Bridge & Iron Company a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Chicago Bridge & Iron Company as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share, notable return on equity, largely solid financial position with reasonable debt levels by most measures and increase in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Chicago Bridge & Iron Company Ratings Report now.

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If you are interested in one of these 4 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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