Hovnanian Enterprises Inc (HOV): 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.

Hovnanian ( HOV) pushed the Industrial Goods sector lower today making it today's featured Industrial Goods laggard. The sector as a whole closed the day up 0.3%. By the end of trading, Hovnanian fell 12 cents (-2%) to $5.94 on light volume. Throughout the day, 5.9 million shares of Hovnanian exchanged hands as compared to its average daily volume of 10.3 million shares. The stock ranged in price between $5.90-$6.08 after having opened the day at $6.08 as compared to the previous trading day's close of $6.06. Other companies within the Industrial Goods sector that declined today were: JinkoSolar ( JKS), down 10.1%, Energy Recovery ( ERII), down 7.8%, ZBB Energy Corporation ( ZBB), down 5.9%, and Continental Materials Corporation ( CUO), down 4.2%.
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Hovnanian Enterprises, Inc. designs, constructs, markets, and sells residential homes in the United States. It constructs single-family attached and detached homes, attached townhomes and condominiums, and urban infill and active adult homes. Hovnanian has a market cap of $740 million and is part of the materials & construction industry. Shares are down 13.4% year to date as of the close of trading on Friday. Currently there are no analysts that rate Hovnanian a buy, two analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates Hovnanian as a sell. Among the areas we feel are negative, one of the most important has been poor profit margins.

On the positive front, Cleantech Solutions International ( CLNT), up 12.5%, Coleman Cable ( CCIX), up 10.7%, Goldfield ( GV), up 10.3%, and Metalico ( MEA), up 8.4%, were all gainers within the industrial goods sector with TransDigm Group ( TDG) 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).

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