Hovnanian Enterprises Inc (HOV): 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.

Hovnanian ( HOV) pushed the Materials & Construction industry lower today making it today's featured Materials & Construction laggard. The industry as a whole closed the day up 0.1%. By the end of trading, Hovnanian fell 35 cents (-5.3%) to $6.26 on average volume. Throughout the day, 11 million shares of Hovnanian exchanged hands as compared to its average daily volume of 9.1 million shares. The stock ranged in price between $6.20-$6.61 after having opened the day at $6.60 as compared to the previous trading day's close of $6.61. Other companies within the Materials & Construction industry that declined today were: China Advanced Construction Materials Group ( CADC), down 7.3%, Comstock ( CHCI), down 3.9%, Guanwei Recycling ( GPRC), down 3.4%, and Tri-Tech ( TRIT), down 3.4%.
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Hovnanian Enterprises, Inc. designs, constructs, markets, and sells residential homes in the United States. It constructs single-family attached and detached homes, attached townhomes and condominiums, and urban infill and active adult homes. Hovnanian has a market cap of $828 million and is part of the industrial goods sector. Shares are down 1.3% year to date as of the close of trading on Monday. Currently there are no analysts that rate Hovnanian a buy, two analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates Hovnanian as a sell. Among the areas we feel are negative, one of the most important has been poor profit margins.

On the positive front, India Globalization Capital ( IGC), up 5.7%, Apogee ( APOG), up 5.6%, Integrated Electrical Services ( IESC), up 4.8%, and Sharps Compliance Corporation ( SMED), up 4.8%, were all gainers within the materials & construction industry with Owens Corning Incorporated ( OC) 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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