DR Horton Inc (DHI): 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.

DR Horton ( DHI) pushed the Industrial Goods sector lower today making it today's featured Industrial Goods laggard. The sector as a whole closed the day down 0.2%. By the end of trading, DR Horton fell 35 cents (-1.9%) to $18.59 on average volume. Throughout the day, 8.1 million shares of DR Horton exchanged hands as compared to its average daily volume of 6.5 million shares. The stock ranged in price between $18.36-$19.05 after having opened the day at $18.99 as compared to the previous trading day's close of $18.94. Other companies within the Industrial Goods sector that declined today were: NF Energy Saving ( NFEC), down 11.2%, China Valves Technology ( CVVT), down 11.1%, Highpower International ( HPJ), down 8.6%, and M/I Homes ( MHO), down 7.9%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

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 $6.22 billion and is part of the materials & construction industry. The company has a P/E ratio of seven, below the S&P 500 P/E ratio of 17.7. Shares are up 53.6% year to date as of the close of trading on Tuesday. Currently there are five analysts that rate DR Horton a buy, three analysts rate it a sell, and six 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.

On the positive front, Real Goods Solar ( RSOL), up 39.9%, Ecotality ( ECTY), up 18.2%, Hydrogenics Corporation ( HYGS), up 13.3%, and Aerovironment Incorporated ( AVAV), up 13.2%, were all gainers within the industrial goods sector with Emerson Electric ( EMR) 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).

Holiday Special: Subscribe to Action Alerts PLUS to see how Jim Cramer trades his $2.5 Million+ portfolio for 51% off the list price. Your first 14-days are FREE: Sign up today to get e-mail alerts before every trade.

If you liked this article you might like

D.R. Horton Is Building Toward the $50 Mark

Pulte Is Doing Little to Boost Sentiment, D.R. Horton Will Follow Suit

I'm Still Sold on Homebuilders