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

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 higher today making it today's featured industrial goods winner. The sector as a whole closed the day up 0.8%. By the end of trading, DR Horton rose $0.51 (2.1%) to $24.53 on average volume. Throughout the day, 7,214,373 shares of DR Horton exchanged hands as compared to its average daily volume of 6,048,700 shares. The stock ranged in a price between $24.01-$24.79 after having opened the day at $24.18 as compared to the previous trading day's close of $24.02. Other companies within the Industrial Goods sector that increased today were: Patrick Industries ( PATK), up 18.2%, Comstock ( CHCI), up 12.7%, Ecotality ( ECTY), up 12.4% and Erickson Air-Crane ( EAC), up 10.2%.
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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 19.1% year to date as of the close of trading on Wednesday.

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 negative front, Exide Technologies ( XIDE), down 23.9%, China BAK Battery ( CBAK), down 12.4%, Intellicheck Mobilisa ( IDN), down 7.5% and GreenHunter Energy ( GRH), down 6.5% , were all laggards within the industrial goods sector with Reliance Steel and Aluminum ( RS) being today's industrial goods sector laggard.

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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