Lennar Corporation (LEN): Today's Featured Industrial Goods 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.

Lennar Corporation ( LEN) pushed the Industrial Goods sector higher today making it today's featured industrial goods winner. The sector as a whole closed the day up 1%. By the end of trading, Lennar Corporation rose $1.60 (4.1%) to $40.87 on average volume. Throughout the day, 5.9 million shares of Lennar Corporation exchanged hands as compared to its average daily volume of 4.6 million shares. The stock ranged in a price between $39.29-$41.55 after having opened the day at $39.30 as compared to the previous trading day's close of $39.27. Other companies within the Industrial Goods sector that increased today were: Real Goods Solar ( RSOL), up 36%, Continental Materials Corporation ( CUO), up 13.5%, Masco Corporation ( MAS), up 12.5%, and Hovnanian ( HOV), up 10.9%.
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Lennar Corporation, together with its subsidiaries, engages in homebuilding, financial services, and real estate businesses in the United States. Lennar Corporation has a market cap of $6.42 billion and is part of the materials & construction industry. The company has a P/E ratio of 12.8, below the S&P 500 P/E ratio of 17.7. Shares are up 3.3% year to date as of the close of trading on Monday. Currently there are seven analysts that rate Lennar Corporation a buy, two analysts rate it a sell, and eight rate it a hold.

TheStreet Ratings rates Lennar Corporation as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, good cash flow from operations, solid stock price performance and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the negative front, Bonso Electronics International ( BNSO), down 9.4%, ExOne ( XONE), down 8.6%, 3D Systems Corporation ( DDD), down 6.4%, and Stratasys ( SSYS), down 6.4%, were all laggards within the industrial goods sector with Precision Castparts ( PCP) being today's industrial goods sector laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the industrial goods sector could consider Industrial Select Sector SPDR ( XLI) while those bearish on the industrial goods sector could consider ProShares Short Dow 30 ( DOG).

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