Toll Brothers Inc (TOL): 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

Toll Brothers ( TOL) pushed the Industrial Goods sector lower today making it today's featured Industrial Goods laggard. The sector as a whole closed the day up 0.4%. By the end of trading, Toll Brothers fell $0.48 (-1.3%) to $36.56 on average volume. Throughout the day, 4,341,745 shares of Toll Brothers exchanged hands as compared to its average daily volume of 3,797,600 shares. The stock ranged in price between $36.35-$37.35 after having opened the day at $37.00 as compared to the previous trading day's close of $37.04. Other companies within the Industrial Goods sector that declined today were: ExOne ( XONE), down 15.3%, India Globalization Capital ( IGC), down 10.0%, Pike Electric Corporation ( PIKE), down 8.5% and MagneGas Corporation ( MNGA), down 8.1%.
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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 $6.2 billion and is part of the materials & construction industry. The company has a P/E ratio of 12.5, below the S&P 500 P/E ratio of 17.7. Shares are up 14.6% year to date as of the close of trading on Tuesday. Currently there are 8 analysts that rate Toll Brothers a buy, 2 analysts rate it a sell, and 6 rate it a hold.

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 positive front, Comstock ( CHCI), down 30.7%, Intellicheck Mobilisa ( IDN), down 15.2%, Guanwei Recycling ( GPRC), down 13.9% and Altair Nanotechnologies ( ALTI), down 10.8% , were all gainers within the industrial goods sector with Illinois Tool Works ( ITW) 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).

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