4 Stocks Pushing The Materials & Construction Industry Lower

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

All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 135 points (1.0%) at 13,995 as of Friday, Feb. 1, 2013, 11:44 AM ET. The NYSE advances/declines ratio sits at 2,283 issues advancing vs. 634 declining with 96 unchanged.

The Materials & Construction industry currently sits up 0.6% versus the S&P 500, which is up 0.9%. A company within the industry that fell today was James Hardie Industries ( JHX), up 1.7%. Top gainers within the industry include Fluor Corporation ( FLR), up 1.8%, Masco Corporation ( MAS), up 1.4%, Sherwin-Williams Company ( SHW), up 1.2%, Cemex S.A.B. de C.V ( CX), up 1.3% and DR Horton ( DHI), up 1.4%.

TheStreet Ratings group would like to highlight 4 stocks pushing the industry lower today:

4. M/I Homes ( MHO) is one of the companies pushing the Materials & Construction industry lower today. As of noon trading, M/I Homes is down $1.24 (-4.5%) to $26.00 on average volume Thus far, 269,666 shares of M/I Homes exchanged hands as compared to its average daily volume of 399,600 shares. The stock has ranged in price between $25.83-$27.57 after having opened the day at $27.12 as compared to the previous trading day's close of $27.24.

M/I Homes, Inc., together with its subsidiaries, primarily operates as a builder of single-family homes in the United States. The company operates in two segments, Homebuilding and Financial Services. M/I Homes has a market cap of $594.0 million and is part of the industrial goods sector. The company has a P/E ratio of 102.6, above the S&P 500 P/E ratio of 17.7. Shares are up 4.6% year to date as of the close of trading on Thursday. Currently there are no analysts that rate M/I Homes a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates M/I Homes as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins. Get the full M/I Homes Ratings Report now.

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3. As of noon trading, Covanta Holding Corporation ( CVA) is down $0.23 (-1.2%) to $19.49 on heavy volume Thus far, 1.3 million shares of Covanta Holding Corporation exchanged hands as compared to its average daily volume of 825,900 shares. The stock has ranged in price between $19.41-$19.77 after having opened the day at $19.77 as compared to the previous trading day's close of $19.72.

Covanta Holding Corporation, through its subsidiaries, provides waste and energy services to municipal entities primarily in North America. Covanta Holding Corporation has a market cap of $2.5 billion and is part of the industrial goods sector. The company has a P/E ratio of 42.5, above the S&P 500 P/E ratio of 17.7. Shares are up 3.7% year to date as of the close of trading on Thursday. Currently there are 7 analysts that rate Covanta Holding Corporation a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Covanta Holding Corporation as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Covanta Holding Corporation Ratings Report now.

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2. As of noon trading, Meritage Homes Corporation ( MTH) is down $1.46 (-3.3%) to $42.78 on average volume Thus far, 310,761 shares of Meritage Homes Corporation exchanged hands as compared to its average daily volume of 513,600 shares. The stock has ranged in price between $42.49-$44.85 after having opened the day at $44.52 as compared to the previous trading day's close of $44.24.

Meritage Homes Corporation engages in designing and building single-family detached homes. It provides various homes under the Meritage Homes and Monterey Homes names for a range of homebuyers, including first-time, move-up, luxury, and active adult buyers. Meritage Homes Corporation has a market cap of $1.5 billion and is part of the industrial goods sector. Shares are up 15.6% year to date as of the close of trading on Thursday. Currently there are 5 analysts that rate Meritage Homes Corporation a buy, 1 analyst rates it a sell, and 5 rate it a hold.

TheStreet Ratings rates Meritage Homes Corporation as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, compelling growth in net income, impressive record of earnings per share growth and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Get the full Meritage Homes Corporation Ratings Report now.

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1. As of noon trading, Toll Brothers ( TOL) is down $0.20 (-0.5%) to $37.25 on light volume Thus far, 993,162 shares of Toll Brothers exchanged hands as compared to its average daily volume of 3.5 million shares. The stock has ranged in price between $37.04-$37.89 after having opened the day at $37.67 as compared to the previous trading day's close of $37.45.

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 $6.3 billion and is part of the industrial goods sector. The company has a P/E ratio of 13.1, below the S&P 500 P/E ratio of 17.7. Shares are up 15.5% year to date as of the close of trading on Thursday. Currently there are 8 analysts that rate Toll Brothers a buy, 2 analysts rate it a sell, and 7 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, largely solid financial position with reasonable debt levels by most measures, notable return on equity, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Toll Brothers Ratings Report now.

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If you are interested in one of these 4 stocks, 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).

A reminder about TheStreet Ratings group: 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.

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