DR Horton Inc (DHI): Today's Featured Industrial Goods 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.

DR Horton ( DHI) pushed the Industrial Goods sector lower today making it today's featured Industrial Goods laggard. The sector as a whole closed the day up 0.7%. By the end of trading, DR Horton fell 37 cents (-1.6%) to $23.29 on average volume. Throughout the day, 6.6 million shares of DR Horton exchanged hands as compared to its average daily volume of 5.7 million shares. The stock ranged in price between $22.95-$24.10 after having opened the day at $23.83 as compared to the previous trading day's close of $23.66. Other companies within the Industrial Goods sector that declined today were: TAT Technologies ( TATT), down 9.5%, China BAK Battery ( CBAK), down 9%, Daktronics ( DAKT), down 9%, and Intellicheck Mobilisa ( IDN), down 8.2%.
  • 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.

D.R. Horton, Inc. operates as a homebuilding company. The company engages in the acquisition and development of land; and construction and sale of residential homes in 26 states and 77 markets in the United States primarily under the D.R. Horton, America's Builder name. DR Horton has a market cap of $7.6 billion and is part of the materials & construction industry. The company has a P/E ratio of 8.2, below the S&P 500 P/E ratio of 17.7. Shares are up 19.6% year to date as of the close of trading on Friday. Currently there are eight analysts that rate DR Horton a buy, one analyst rates it a sell, and eight rate it a hold.

TheStreet Ratings rates DR Horton 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, solid stock price performance and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, Real Goods Solar ( RSOL), up 15%, Omega Flex ( OFLX), up 12%, Tower International ( TOWR), up 11.8%, and CUI Global ( CUGI), up 10.1%, were all gainers within the industrial goods sector with 3D Systems Corporation ( DDD) being today's featured industrial goods sector leader.

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).

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.