PulteGroup Inc (PHM): 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.

PulteGroup ( PHM) pushed the Materials & Construction industry higher today making it today's featured materials & construction winner. The industry as a whole closed the day up 1.8%. By the end of trading, PulteGroup rose $1.02 (5.3%) to $20.32 on heavy volume. Throughout the day, 16.6 million shares of PulteGroup exchanged hands as compared to its average daily volume of 10.4 million shares. The stock ranged in a price between $19.32-$20.65 after having opened the day at $19.33 as compared to the previous trading day's close of $19.30. Other companies within the Materials & Construction industry that increased today were: Real Goods Solar ( RSOL), up 36%, Masco Corporation ( MAS), up 12.5%, Hovnanian ( HOV), up 10.9%, and Goldfield ( GV), up 9.3%.
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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 $7.53 billion and is part of the industrial goods sector. The company has a P/E ratio of 36.1, above the S&P 500 P/E ratio of 17.7. Shares are up 7.2% year to date as of the close of trading on Monday. Currently there are six analysts that rate PulteGroup a buy, one analyst rates it a sell, and seven rate it a hold.

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

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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