3 Stocks Pushing The Materials & Construction Industry Downward

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 3 points (0.0%) at 14,977 as of Monday, May 6, 2013, 12:49 PM ET. The NYSE advances/declines ratio sits at 1,675 issues advancing vs. 1,221 declining with 157 unchanged.

The Materials & Construction industry currently sits up 0.4% versus the S&P 500, which is up 0.2%. On the negative front, top decliners within the industry include Nortek ( NTK), down 2.52, and Empresas ICA S.A.B. de C.V ( ICA), down 1.50. Top gainers within the industry include Progressive Waste Solutions ( BIN), up 3.3%, Standard Pacific ( SPF), up 2.4%, Louisiana-Pacific ( LPX), up 1.8%, EMCOR Group ( EME), up 1.6% and Clean Harbors ( CLH), up 1.5%.

TheStreet Ratings group would like to highlight 3 stocks pushing the industry lower today:

3. Gafisa ( GFA) is one of the companies pushing the Materials & Construction industry lower today. As of noon trading, Gafisa is down $0.13 (-3.2%) to $3.87 on light volume Thus far, 622,559 shares of Gafisa exchanged hands as compared to its average daily volume of 1.8 million shares. The stock has ranged in price between $3.86-$4.02 after having opened the day at $3.98 as compared to the previous trading day's close of $4.00.

Gafisa S.A. operates as a homebuilder in Brazil. Gafisa has a market cap of $837.1 million and is part of the industrial goods sector. Shares are down 14.0% year to date as of the close of trading on Friday.

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

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2. As of noon trading, MasTec ( MTZ) is down $0.33 (-1.1%) to $30.16 on average volume Thus far, 418,617 shares of MasTec exchanged hands as compared to its average daily volume of 873,000 shares. The stock has ranged in price between $29.82-$30.49 after having opened the day at $30.49 as compared to the previous trading day's close of $30.49.

MasTec, Inc., an infrastructure construction company, engages in the engineering, building, installation, maintenance, and upgrade of energy, utility, and communications infrastructure primarily in North America. MasTec has a market cap of $2.1 billion and is part of the industrial goods sector. The company has a P/E ratio of 18.4, above the S&P 500 P/E ratio of 17.7. Shares are up 22.3% year to date as of the close of trading on Friday.

TheStreet Ratings rates MasTec as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth, increase in net income and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full MasTec Ratings Report now.

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.

1. As of noon trading, NVR ( NVR) is down $15.20 (-1.5%) to $1,007.00 on light volume Thus far, 12,902 shares of NVR exchanged hands as compared to its average daily volume of 34,600 shares. The stock has ranged in price between $1,003.04-$1,023.75 after having opened the day at $1,023.75 as compared to the previous trading day's close of $1,022.20.

NVR, Inc. operates as a homebuilder in the United States. The company engages in the construction and sale of single-family detached homes, townhomes, and condominium buildings under the trade names of Ryan Homes, NVHomes, Fox Ridge Homes, and Heartland Homes. NVR has a market cap of $5.1 billion and is part of the industrial goods sector. The company has a P/E ratio of 26.9, above the S&P 500 P/E ratio of 17.7. Shares are up 11.1% year to date as of the close of trading on Friday.

TheStreet Ratings rates NVR 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, solid stock price performance and compelling growth in net income. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full NVR Ratings Report now.

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 are interested in one of these 5 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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