4 Stocks Dragging In The Materials & Construction Industry

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 up today with the Dow Jones Industrial Average ( ^DJI) trading up 142 points (1.0%) at 14,816 as of Wednesday, April 10, 2013, 12:45 PM ET. The NYSE advances/declines ratio sits at 2,253 issues advancing vs. 654 declining with 139 unchanged.

The Materials & Construction industry currently sits up 0.7% versus the S&P 500, which is up 1.2%. A company within the industry that increased today was Sherwin-Williams Company ( SHW), up 0.87.

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

4. Fastenal Company ( FAST) is one of the companies pushing the Materials & Construction industry lower today. As of noon trading, Fastenal Company is down $1.57 (-3.1%) to $49.31 on heavy volume Thus far, 2.6 million shares of Fastenal Company exchanged hands as compared to its average daily volume of 1.6 million shares. The stock has ranged in price between $48.10-$50.32 after having opened the day at $48.92 as compared to the previous trading day's close of $50.88.

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 $14.9 billion and is part of the industrial goods sector. The company has a P/E ratio of 35.4, above the S&P 500 P/E ratio of 17.7. Shares are up 9.1% year to date as of the close of trading on Tuesday.

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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3. As of noon trading, Toll Brothers ( TOL) is down $0.63 (-1.9%) to $32.11 on average volume Thus far, 1.7 million shares of Toll Brothers exchanged hands as compared to its average daily volume of 3.4 million shares. The stock has ranged in price between $31.99-$32.97 after having opened the day at $32.83 as compared to the previous trading day's close of $32.74.

Toll Brothers, Inc., together with its subsidiaries, designs, builds, markets, and arranges finance for detached and attached homes in luxury residential communities. It is also involved in building or converting existing rental apartment buildings into high-, mid-, and low-rise luxury homes. Toll Brothers has a market cap of $5.6 billion and is part of the industrial goods sector. The company has a P/E ratio of 11.4, below the S&P 500 P/E ratio of 17.7. Shares are up 1.3% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates Toll Brothers 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 compelling growth in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Toll Brothers Ratings Report now.

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2. As of noon trading, Lennar Corporation ( LEN) is down $0.57 (-1.4%) to $39.17 on average volume Thus far, 1.8 million shares of Lennar Corporation exchanged hands as compared to its average daily volume of 4.2 million shares. The stock has ranged in price between $39.00-$39.89 after having opened the day at $39.79 as compared to the previous trading day's close of $39.74.

Lennar Corporation, together with its subsidiaries, engages in homebuilding, financial services, and real estate businesses in the United States. Lennar Corporation has a market cap of $6.5 billion and is part of the industrial goods sector. The company has a P/E ratio of 12.3, below the S&P 500 P/E ratio of 17.7. Shares are up 2.8% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates Lennar Corporation as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income, solid stock price performance and impressive record of earnings per share growth. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full Lennar Corporation Ratings Report now.

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1. As of noon trading, PulteGroup ( PHM) is down $0.34 (-1.8%) to $19.11 on average volume Thus far, 3.9 million shares of PulteGroup exchanged hands as compared to its average daily volume of 9.6 million shares. The stock has ranged in price between $19.01-$19.58 after having opened the day at $19.58 as compared to the previous trading day's close of $19.45.

PulteGroup, Inc., through its subsidiaries, engages in homebuilding and financial services businesses primarily in the United States. PulteGroup has a market cap of $7.6 billion and is part of the industrial goods sector. The company has a P/E ratio of 36.5, above the S&P 500 P/E ratio of 17.7. Shares are up 7.1% year to date as of the close of trading on Tuesday.

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 4 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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