Ryland Group Inc. (RYL): 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.

Ryland Group ( RYL) pushed the Materials & Construction industry lower today making it today's featured Materials & Construction laggard. The industry as a whole closed the day up 0.3%. By the end of trading, Ryland Group fell 35 cents (-1%) to $33.61 on light volume. Throughout the day, 617,045 shares of Ryland Group exchanged hands as compared to its average daily volume of 1.4 million shares. The stock ranged in price between $33.25-$34.04 after having opened the day at $33.80 as compared to the previous trading day's close of $33.96. Other companies within the Materials & Construction industry that declined today were: MagneGas Corporation ( MNGA), down 4.7%, Patrick Industries ( PATK), down 2.9%, Dycom Industries ( DY), down 2.9%, and China Advanced Construction Materials Group ( CADC), down 2.7%.
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The Ryland Group, Inc. operates as a homebuilder and a mortgage-finance company in the United States. It engages in the design, construction, and sale of homes, as well as provides mortgage, title insurance, escrow, and insurance services. Ryland Group has a market cap of $1.54 billion and is part of the industrial goods sector. The company has a P/E ratio of 103.5, above the S&P 500 P/E ratio of 17.7. Shares are up 116.6% year to date as of the close of trading on Thursday. Currently there are five analysts that rate Ryland Group a buy, no analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates Ryland Group as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, premium valuation and poor profit margins.

On the positive front, Real Goods Solar ( RSOL), up 7.1%, Pure Cycle Corporation ( PCYO), up 6.9%, Comstock ( CHCI), up 6.8%, and US Ecology ( ECOL), up 6.8%, were all gainers within the materials & construction industry with Cemex S.A.B. de C.V ( CX) 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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