Toll Brothers Inc (TOL): 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

Toll Brothers ( TOL) pushed the Industrial Goods sector higher today making it today's featured industrial goods winner. The sector as a whole closed the day down 0.6%. By the end of trading, Toll Brothers rose $0.80 (2.4%) to $34.69 on average volume. Throughout the day, 3,274,649 shares of Toll Brothers exchanged hands as compared to its average daily volume of 3,756,200 shares. The stock ranged in a price between $33.88-$34.97 after having opened the day at $34.30 as compared to the previous trading day's close of $33.89. Other companies within the Industrial Goods sector that increased today were: Intellicheck Mobilisa ( IDN), up 13.1%, JinkoSolar ( JKS), up 12.9%, PGT ( PGTI), up 10.1% and DR Horton ( DHI), up 8.7%.
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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 $5.7 billion and is part of the materials & construction industry. The company has a P/E ratio of 11.6, below the S&P 500 P/E ratio of 17.7. Shares are up 4.8% year to date as of the close of trading on Thursday.

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, solid stock price performance, compelling growth in net income and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the negative front, Exide Technologies ( XIDE), down 18.0%, China BAK Battery ( CBAK), down 9.5%, Simpson Manufacturing ( SSD), down 8.9% and Ecotality ( ECTY), down 8.4% , were all laggards within the industrial goods sector with Parker Hannifin Corporation ( PH) 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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