Hovnanian Enterprises Inc (HOV): 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

Hovnanian ( HOV) pushed the Industrial Goods sector lower today making it today's featured Industrial Goods laggard. The sector as a whole closed the day up 0.7%. By the end of trading, Hovnanian fell $0.11 (-1.9%) to $5.56 on light volume. Throughout the day, 4,929,629 shares of Hovnanian exchanged hands as compared to its average daily volume of 7,398,600 shares. The stock ranged in price between $5.50-$5.82 after having opened the day at $5.72 as compared to the previous trading day's close of $5.67. Other companies within the Industrial Goods sector that declined today were: Comstock ( CHCI), down 7.6%, Hydrogenics Corporation ( HYGS), down 5.3%, ZBB Energy Corporation ( ZBB), down 5.2% and P & F Industries ( PFIN), down 5.2%.
  • EXCLUSIVE OFFER: Jim Cramer's Protege, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Hovnanian Enterprises, Inc. designs, constructs, markets, and sells residential homes in the United States. It constructs single-family attached and detached homes, attached townhomes and condominiums, and urban infill and active adult homes. Hovnanian has a market cap of $687.1 million and is part of the materials & construction industry. Shares are down 19.0% year to date as of the close of trading on Friday.

TheStreet Ratings rates Hovnanian as a sell. Among the areas we feel are negative, one of the most important has been poor profit margins.

On the positive front, China Recycling Energy Corporation ( CREG), down 21.1%, Broadwind Energy ( BWEN), down 13.5%, Patrick Industries ( PATK), down 9.2% and Ecotality ( ECTY), down 7.5% , were all gainers within the industrial goods sector with 3D Systems Corporation ( DDD) 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).

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.

If you liked this article you might like

Hurricane Irma, Trump and ECB - 5 Things You Must Know Before the Market Opens

Congress Is Back in Session and Tax Reform Is Top of Mind - Week Ahead

Housing Data Drives Down Homebuilding Stocks

Stock Futures Pare Gains After Off-the-Mark May Jobs Report

5 Things You Must Know Before the Market Opens Friday