PulteGroup Inc (PHM): 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.

PulteGroup ( PHM) pushed the Materials & Construction industry lower today making it today's featured Materials & Construction laggard. The industry as a whole closed the day down 0.3%. By the end of trading, PulteGroup fell 24 cents (-1.2%) to $19.10 on average volume. Throughout the day, 8.6 million shares of PulteGroup exchanged hands as compared to its average daily volume of 11.1 million shares. The stock ranged in price between $19.01-$19.59 after having opened the day at $19.48 as compared to the previous trading day's close of $19.34. Other companies within the Materials & Construction industry that declined today were: MagneGas Corporation ( MNGA), down 6.3%, M/I Homes ( MHO), down 3.8%, A V Homes ( AVHI), down 3.7%, and Cementos Pacasmayo SAA ADR ( CPAC), down 3.6%.
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PulteGroup, Inc., through its subsidiaries, engages in homebuilding and financial services businesses primarily in the United States. PulteGroup has a market cap of $7.5 billion and is part of the industrial goods sector. The company has a P/E ratio of 46.2, above the S&P 500 P/E ratio of 17.7. Shares are up 6.5% year to date as of the close of trading on Friday. Currently there are seven analysts that rate PulteGroup a buy, one analyst rates it a sell, and six rate it a hold.

TheStreet Ratings rates PulteGroup as a hold. The company's strengths can be seen in multiple areas, such as its 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.

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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