Weyerhaeuser Co (WY): 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.

Weyerhaeuser ( WY) pushed the Materials & Construction industry lower today making it today's featured Materials & Construction laggard. The industry as a whole closed the day down 0.5%. By the end of trading, Weyerhaeuser fell 48 cents (-1.7%) to $27.25 on light volume. Throughout the day, 3.3 million shares of Weyerhaeuser exchanged hands as compared to its average daily volume of 4.5 million shares. The stock ranged in price between $27.16-$27.73 after having opened the day at $27.64 as compared to the previous trading day's close of $27.73. Other companies within the Materials & Construction industry that declined today were: Hovnanian ( HOV), down 5.3%, A V Homes ( AVHI), down 4.1%, MYR Group ( MYRG), down 3.6%, and Gafisa ( GFA), down 2.8%.
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Weyerhaeuser Company, a forest products company, grows and harvests trees, builds homes, and manufactures forest products worldwide. It grows and harvests trees for use as lumber, other wood and building products, and pulp and paper. Weyerhaeuser has a market cap of $14.94 billion and is part of the industrial goods sector. The company has a P/E ratio of 48.4, above the S&P 500 P/E ratio of 17.7. Shares are up 47.8% year to date as of the close of trading on Wednesday. Currently there are three analysts that rate Weyerhaeuser a buy, five analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates Weyerhaeuser as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth and reasonable valuation levels. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

On the positive front, Integrated Electrical Services ( IESC), up 8.8%, China Advanced Construction Materials Group ( CADC), up 4.1%, Perma-Fix Environmental Services ( PESI), up 2.6%, and Veolia Environnement ( VE), up 2.4%, were all gainers within the materials & construction industry with KB Home ( KBH) 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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