KB Home (KBH): 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.

KB Home ( KBH) pushed the Industrial Goods sector lower today making it today's featured Industrial Goods laggard. The sector as a whole was unchanged today. By the end of trading, KB Home fell 23 cents (-1.1%) to $20.29 on average volume. Throughout the day, 3.7 million shares of KB Home exchanged hands as compared to its average daily volume of 4.9 million shares. The stock ranged in price between $20.29-$20.68 after having opened the day at $20.47 as compared to the previous trading day's close of $20.52. Other companies within the Industrial Goods sector that declined today were: Great Lakes Dredge & Dock Corporation ( GLDD), down 18%, Vertex Energy ( VTNR), down 13.8%, Clean Diesel Technologies ( CDTI), down 9.9%, and Intellicheck Mobilisa ( IDN), down 9.3%.
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KB Home operates as a homebuilding and financial services company in the United States. The company constructs and sells various homes, including attached and detached single-family residential homes, townhomes, and condominiums primarily for first-time, move-up, and active adult homebuyers. KB Home has a market cap of $1.69 billion and is part of the materials & construction industry. Shares are up 29.9% year to date as of the close of trading on Thursday. Currently there are three analysts that rate KB Home a buy, three analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates KB Home as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and poor profit margins.

On the positive front, Ultralife Batteries ( ULBI), up 9.7%, China Valves Technology ( CVVT), up 8.8%, Metalico ( MEA), up 7.3%, and MagneGas Corporation ( MNGA), up 6.6%, were all gainers within the industrial goods sector with Precision Castparts ( PCP) 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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