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 47 points (0.3%) at 15,382 as of Tuesday, May 21, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,570 issues advancing vs. 1,367 declining with 136 unchanged.

The Materials & Construction industry currently sits down 0.49 versus the S&P 500, which is up 0.2%. On the negative front, top decliners within the industry include Lennar Corporation ( LEN), down 2.55, PulteGroup ( PHM), down 2.41 and Cemex S.A.B. de C.V ( CX), down 2.24.

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

3. Empresas ICA S.A.B. de C.V ( ICA) is one of the companies pushing the Materials & Construction industry lower today. As of noon trading, Empresas ICA S.A.B. de C.V is down $0.61 (-6.2%) to $9.26 on heavy volume Thus far, 778,261 shares of Empresas ICA S.A.B. de C.V exchanged hands as compared to its average daily volume of 548,100 shares. The stock has ranged in price between $9.15-$10.09 after having opened the day at $9.95 as compared to the previous trading day's close of $9.87.

Empresas ICA, S.A.B. de C.V., through its subsidiaries, primarily engages in construction and related activities in Mexico and Latin America. Empresas ICA S.A.B. de C.V has a market cap of $1.6 billion and is part of the industrial goods sector. The company has a P/E ratio of 1.1, below the S&P 500 P/E ratio of 17.7. Shares are up 6.1% year to date as of the close of trading on Monday.

TheStreet Ratings rates Empresas ICA S.A.B. de C.V as a hold. Among the primary strengths of the company is its solid stock price performance. At the same time, however, we find that net income has been generally deteriorating over time. Get the full Empresas ICA S.A.B. de C.V Ratings Report now.

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2. As of noon trading, Toll Brothers ( TOL) is down $1.12 (-3.1%) to $35.49 on average volume Thus far, 2.8 million shares of Toll Brothers exchanged hands as compared to its average daily volume of 3.8 million shares. The stock has ranged in price between $34.96-$36.88 after having opened the day at $36.61 as compared to the previous trading day's close of $36.61.

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 industrial goods sector. The company has a P/E ratio of 12.7, below the S&P 500 P/E ratio of 17.7. Shares are up 13.2% year to date as of the close of trading on Monday.

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. Get the full Toll Brothers Ratings Report now.

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1. As of noon trading, DR Horton ( DHI) is down $0.45 (-1.7%) to $26.29 on average volume Thus far, 2.4 million shares of DR Horton exchanged hands as compared to its average daily volume of 5.7 million shares. The stock has ranged in price between $25.91-$26.99 after having opened the day at $26.82 as compared to the previous trading day's close of $26.74.

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 $8.8 billion and is part of the industrial goods sector. The company has a P/E ratio of 8.8, below the S&P 500 P/E ratio of 17.7. Shares are up 37.7% year to date as of the close of trading on Monday.

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 compelling growth in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full DR Horton 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 3 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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