Toll Brothers Inc (TOL): Today's Featured Materials & Construction Winner

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.

Toll Brothers ( TOL) pushed the Materials & Construction industry higher today making it today's featured materials & construction winner. The industry as a whole closed the day up 0.5%. By the end of trading, Toll Brothers rose $1.30 (3.8%) to $35.39 on heavy volume. Throughout the day, 5.2 million shares of Toll Brothers exchanged hands as compared to its average daily volume of 3.4 million shares. The stock ranged in a price between $33.71-$35.41 after having opened the day at $33.82 as compared to the previous trading day's close of $34.09. Other companies within the Materials & Construction industry that increased today were: Jewett-Cameron Trading Company ( JCTCF), up 9%, China Advanced Construction Materials Group ( CADC), up 7.2%, MagneGas Corporation ( MNGA), up 6.4%, and Primoris Services Corporation ( PRIM), up 3.9%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Toll Brothers, Inc., together with its subsidiaries, designs, builds, markets, and arranges finance for detached and attached homes in luxury residential communities. It is also involved in building or converting existing rental apartment buildings into high-, mid-, and low-rise luxury homes. Toll Brothers has a market cap of $5.82 billion and is part of the industrial goods sector. The company has a P/E ratio of 12, below the S&P 500 P/E ratio of 17.7. Shares are up 6.4% year to date as of the close of trading on Monday. Currently there are eight analysts that rate Toll Brothers a buy, one analyst rates it a sell, and seven rate it a hold.

TheStreet Ratings rates Toll Brothers as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, notable return on equity, good cash flow from operations and compelling growth in net income. We feel these strengths outweigh the fact that the company shows low 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).

HOLIDAY SPECIAL: Let Jim Cramer show you every trade he is making in his $2.5 Million portfolio. Join now for 14-days FREE. Sign up today to get e-mail alerts before every trade.
null

If you liked this article you might like

These Stocks Are Ready to Reverse Course

Repeal of Mortgage Interest Deduction Is Way Past Due

Measure the Meaning of This Rally: Cramer's 'Mad Money' Recap (Tues 8/22/17)