Plum Creek Timber Co Inc (PCL): 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

Plum Creek Timber ( PCL) pushed the Materials & Construction industry lower today making it today's featured Materials & Construction laggard. The industry as a whole closed the day up 0.7%. By the end of trading, Plum Creek Timber fell $1.24 (-2.5%) to $47.77 on heavy volume. Throughout the day, 2,361,240 shares of Plum Creek Timber exchanged hands as compared to its average daily volume of 789,000 shares. The stock ranged in price between $47.19-$49.04 after having opened the day at $48.96 as compared to the previous trading day's close of $49.01. Other companies within the Materials & Construction industry that declined today were: China Advanced Construction Materials Group ( CADC), down 5.5%, Pure Cycle Corporation ( PCYO), down 4.0%, NCI Building Systems ( NCS), down 3.4% and Weyerhaeuser ( WY), down 2.9%.
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Plum Creek Timber Company, Inc. is a publicly owned real estate investment trust (REIT). The trust owns and manages timberlands in the United States. Its products include lumber products, plywood, medium density fiberboard, and related by-products, such as wood chips. Plum Creek Timber has a market cap of $8.3 billion and is part of the financial sector. The company has a P/E ratio of 35.7, above the S&P 500 P/E ratio of 17.7. Shares are up 14.4% year to date as of the close of trading on Wednesday. Currently there are 2 analysts that rate Plum Creek Timber a buy, 2 analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Plum Creek Timber as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, Goldfield ( GV), down 21.3%, Tri-Tech ( TRIT), down 9.9%, Homex Development ( HXM), down 9.6% and Jewett-Cameron Trading Company ( JCTCF), down 5.7% , were all gainers within the materials & construction industry with Cemex S.A.B. de C.V ( CX) 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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