4 Materials & Construction Stocks Dragging The Industry Down

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

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 45 points (-0.3%) at 14,466 as of Thursday, March 21, 2013, 12:44 PM ET. The NYSE advances/declines ratio sits at 1,235 issues advancing vs. 1,661 declining with 139 unchanged.

The Materials & Construction industry currently sits down 0.4% versus the S&P 500, which is down 0.4%. On the negative front, top decliners within the industry include Toll Brothers ( TOL), down 1.9%, Lennar Corporation ( LEN), down 1.7%, Vulcan Materials Company ( VMC), down 1.6%, Masco Corporation ( MAS), down 1.4% and Sherwin-Williams Company ( SHW), down 0.8%. A company within the industry that increased today was James Hardie Industries ( JHX), up 1.6%.

TheStreet Ratings group would like to highlight 4 stocks pushing the industry lower today:

4. Quanta Services ( PWR) is one of the companies pushing the Materials & Construction industry lower today. As of noon trading, Quanta Services is down $0.72 (-2.4%) to $28.73 on average volume Thus far, 863,774 shares of Quanta Services exchanged hands as compared to its average daily volume of 1.8 million shares. The stock has ranged in price between $28.67-$29.27 after having opened the day at $29.21 as compared to the previous trading day's close of $29.45.

Quanta Services, Inc. provides specialty contracting services and infrastructure solutions in North America and internationally. It operates in three segments: Electric Power Infrastructure Services; Natural Gas and Pipeline Infrastructure Services; and Fiber Optic Licensing and Other. Quanta Services has a market cap of $6.1 billion and is part of the industrial goods sector. The company has a P/E ratio of 21.6, above the S&P 500 P/E ratio of 17.7. Shares are up 7.3% year to date as of the close of trading on Wednesday. Currently there are 12 analysts that rate Quanta Services a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Quanta Services 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, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Quanta Services Ratings Report now.

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3. As of noon trading, Fastenal Company ( FAST) is down $0.66 (-1.3%) to $50.81 on light volume Thus far, 465,322 shares of Fastenal Company exchanged hands as compared to its average daily volume of 1.7 million shares. The stock has ranged in price between $50.59-$51.42 after having opened the day at $51.05 as compared to the previous trading day's close of $51.47.

Fastenal Company, together with its subsidiaries, operates as a wholesaler and retailer of industrial and construction supplies in the United States, Canada, and internationally. The company offers fasteners and other industrial and construction supplies under the Fastenal name. Fastenal Company has a market cap of $15.0 billion and is part of the industrial goods sector. The company has a P/E ratio of 35.5, above the S&P 500 P/E ratio of 17.7. Shares are up 8.7% year to date as of the close of trading on Wednesday. Currently there are 2 analysts that rate Fastenal Company a buy, 1 analyst rates it a sell, and 7 rate it a hold.

TheStreet Ratings rates Fastenal Company as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full Fastenal Company Ratings Report now.

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2. As of noon trading, DR Horton ( DHI) is down $0.58 (-2.3%) to $24.85 on heavy volume Thus far, 4.8 million shares of DR Horton exchanged hands as compared to its average daily volume of 5.8 million shares. The stock has ranged in price between $24.45-$25.34 after having opened the day at $25.34 as compared to the previous trading day's close of $25.43.

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 $7.8 billion and is part of the industrial goods sector. The company has a P/E ratio of 8.4, below the S&P 500 P/E ratio of 17.7. Shares are up 22.9% year to date as of the close of trading on Wednesday. Currently there are 9 analysts that rate DR Horton a buy, 1 analyst rates it a sell, and 7 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. Get the full DR Horton Ratings Report now.

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1. As of noon trading, PulteGroup ( PHM) is down $0.17 (-0.8%) to $21.21 on heavy volume Thus far, 7.3 million shares of PulteGroup exchanged hands as compared to its average daily volume of 9.3 million shares. The stock has ranged in price between $20.86-$21.39 after having opened the day at $21.30 as compared to the previous trading day's close of $21.38.

PulteGroup, Inc., through its subsidiaries, engages in homebuilding and financial services businesses primarily in the United States. PulteGroup has a market cap of $8.0 billion and is part of the industrial goods sector. The company has a P/E ratio of 38.4, above the S&P 500 P/E ratio of 17.7. Shares are up 14.6% year to date as of the close of trading on Wednesday. Currently there are 7 analysts that rate PulteGroup a buy, 1 analyst rates it a sell, and 6 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, compelling growth in net income, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Get the full PulteGroup Ratings Report now.

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If you are interested in one of these 3 stocks, 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).

A reminder about TheStreet Ratings group: 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.

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