KB Home (KBH): Today's Featured Materials & Construction 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

KB Home ( KBH) pushed the Materials & Construction industry lower today making it today's featured Materials & Construction laggard. The industry as a whole closed the day down 0.6%. By the end of trading, KB Home fell $0.29 (-1.2%) to $23.70 on light volume. Throughout the day, 2,850,608 shares of KB Home exchanged hands as compared to its average daily volume of 4,248,800 shares. The stock ranged in price between $23.24-$24.24 after having opened the day at $24.06 as compared to the previous trading day's close of $23.99. Other companies within the Materials & Construction industry that declined today were: China Advanced Construction Materials Group ( CADC), down 9.7%, Real Goods Solar ( RSOL), down 9.4%, Empresas ICA S.A.B. de C.V ( ICA), down 8.0% and PGT ( PGTI), down 7.3%.
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KB Home operates as a homebuilding and financial services company in the United States. The company constructs and sells various homes, including attached and detached single-family residential homes, townhomes, and condominiums primarily for first-time, move-up, and active adult homebuyers. KB Home has a market cap of $2.0 billion and is part of the industrial goods sector. Shares are up 52.4% year to date as of the close of trading on Monday. Currently there are 3 analysts that rate KB Home a buy, 2 analysts rate it a sell, and 13 rate it a hold.

TheStreet Ratings rates KB Home as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, weak operating cash flow and poor profit margins.

On the positive front, MagneGas Corporation ( MNGA), down 6.8%, Comstock ( CHCI), down 6.3%, Quanex Building Products ( NX), down 2.4% and Vertex Energy ( VTNR), down 2.3% , were all gainers within the materials & construction industry with Fastenal Company ( FAST) being today's featured materials & construction industry leader.

For investors not wanting singular stock exposure, 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).

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