Lennar Corporation (LEN): 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.

Lennar Corporation ( LEN) pushed the Materials & Construction industry lower today making it today's featured Materials & Construction laggard. The industry as a whole closed the day down 0.7%. By the end of trading, Lennar Corporation fell $1.36 (-3.6%) to $36.42 on average volume. Throughout the day, 5.8 million shares of Lennar Corporation exchanged hands as compared to its average daily volume of 5.7 million shares. The stock ranged in price between $36.03-$37.87 after having opened the day at $37.79 as compared to the previous trading day's close of $37.78. Other companies within the Materials & Construction industry that declined today were: M/I Homes ( MHO), down 7.9%, Standard Pacific ( SPF), down 5.3%, PulteGroup ( PHM), down 5.2%, and Eagle Materials ( EXP), down 4.7%.
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Lennar Corporation, together with its subsidiaries, engages in homebuilding, financial services, and real estate businesses in the United States. Lennar Corporation has a market cap of $6.03 billion and is part of the industrial goods sector. The company has a P/E ratio of 14, below the S&P 500 P/E ratio of 17.7. Shares are up 92.4% year to date as of the close of trading on Tuesday. Currently there are six analysts that rate Lennar Corporation a buy, two analysts rate it a sell, and eight rate it a hold.

TheStreet Ratings rates Lennar Corporation as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, solid stock price performance, compelling growth in net income and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the positive front, Real Goods Solar ( RSOL), up 39.9%, Ecology and Environment ( EEI), up 4.5%, Pike Electric Corporation ( PIKE), up 4%, and Sharps Compliance Corporation ( SMED), up 2.8%, were all gainers within the materials & construction industry with Waste Management ( WM) 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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