4 Stocks Advancing The Materials & Construction Industry

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 down today with the Dow Jones Industrial Average ( ^DJI) trading down 87 points (-0.6%) at 14,874 as of Thursday, June 6, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,317 issues advancing vs. 1,603 declining with 125 unchanged.

The Materials & Construction industry currently is unchanged today versus the S&P 500, which is down 0.38. Top gainers within the industry include James Hardie Industries ( JHX), up 2.4%, and Sherwin-Williams Company ( SHW), up 0.5%. A company within the industry that fell today was Clean Harbors ( CLH), up 1.40.

TheStreet Ratings group would like to highlight 4 stocks pushing the industry higher today:

4. Foster Wheeler ( FWLT) is one of the companies pushing the Materials & Construction industry higher today. As of noon trading, Foster Wheeler is up $0.63 (2.73) to $23.74 on average volume Thus far, 524,589 shares of Foster Wheeler exchanged hands as compared to its average daily volume of 1.1 million shares. The stock has ranged in price between $23.00-$23.76 after having opened the day at $23.03 as compared to the previous trading day's close of $23.11.

Foster Wheeler AG, through its subsidiaries, operates in engineering and construction, as well as power generating equipment businesses worldwide. Foster Wheeler has a market cap of $2.3 billion and is part of the industrial goods sector. The company has a P/E ratio of 23.0, above the S&P 500 P/E ratio of 17.7. Shares are down 4.4% year to date as of the close of trading on Wednesday. Currently there are 8 analysts that rate Foster Wheeler a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Foster Wheeler as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, poor profit margins and feeble growth in the company's earnings per share. Get the full Foster Wheeler Ratings Report now.

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

3. As of noon trading, KB Home ( KBH) is up $0.55 (2.72) to $20.74 on heavy volume Thus far, 3.2 million shares of KB Home exchanged hands as compared to its average daily volume of 4.1 million shares. The stock has ranged in price between $20.04-$20.79 after having opened the day at $20.17 as compared to the previous trading day's close of $20.19.

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 $1.7 billion and is part of the industrial goods sector. Shares are up 27.8% year to date as of the close of trading on Wednesday. Currently there are 3 analysts that rate KB Home a buy, 2 analysts rate it a sell, and 12 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. Get the full KB Home Ratings Report now.

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

2. As of noon trading, Toll Brothers ( TOL) is up $0.45 (1.39) to $32.81 on average volume Thus far, 2.0 million shares of Toll Brothers exchanged hands as compared to its average daily volume of 4.0 million shares. The stock has ranged in price between $32.11-$32.82 after having opened the day at $32.27 as compared to the previous trading day's close of $32.36.

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 $5.6 billion and is part of the industrial goods sector. The company has a P/E ratio of 11.2, below the S&P 500 P/E ratio of 17.7. Shares are up 0.1% year to date as of the close of trading on Wednesday. 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, notable return on equity, solid stock price performance and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Toll Brothers Ratings Report now.

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

1. As of noon trading, PulteGroup ( PHM) is up $0.40 (1.98) to $20.56 on average volume Thus far, 4.9 million shares of PulteGroup exchanged hands as compared to its average daily volume of 9.4 million shares. The stock has ranged in price between $19.95-$20.59 after having opened the day at $20.14 as compared to the previous trading day's close of $20.16.

PulteGroup, Inc., through its subsidiaries, engages in homebuilding and financial services businesses primarily in the United States. PulteGroup has a market cap of $8.0 billion and is part of the industrial goods sector. The company has a P/E ratio of 26.4, above the S&P 500 P/E ratio of 17.7. Shares are up 11.0% year to date as of the close of trading on Wednesday. Currently there are 6 analysts that rate PulteGroup a buy, 1 analyst rates it a sell, and 8 rate it a hold.

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

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

If you are interested in one of these 4 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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