3 Stocks Dragging 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 8 points (0.1%) at 15,256 as of Monday, June 10, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,353 issues advancing vs. 1,578 declining with 107 unchanged.

The Materials & Construction industry currently sits down 0.17 versus the S&P 500, which is up 0.1%. On the negative front, top decliners within the industry include DR Horton ( DHI), down 2.04, Toll Brothers ( TOL), down 1.79 and PulteGroup ( PHM), down 1.90. A company within the industry that increased today was Vulcan Materials Company ( VMC), up 2.18.

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

3. NVR ( NVR) is one of the companies pushing the Materials & Construction industry lower today. As of noon trading, NVR is down $11.46 (-1.2%) to $971.54 on average volume Thus far, 15,078 shares of NVR exchanged hands as compared to its average daily volume of 36,500 shares. The stock has ranged in price between $967.00-$983.00 after having opened the day at $983.00 as compared to the previous trading day's close of $983.00.

NVR, Inc. operates as a homebuilder in the United States. The company engages in the construction and sale of single-family detached homes, townhomes, and condominium buildings under the trade names of Ryan Homes, NVHomes, Fox Ridge Homes, and Heartland Homes. NVR has a market cap of $4.8 billion and is part of the industrial goods sector. The company has a P/E ratio of 25.6, above the S&P 500 P/E ratio of 17.7. Shares are up 6.8% year to date as of the close of trading on Friday. Currently there are 2 analysts that rate NVR a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates NVR 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, impressive record of earnings per share growth, 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 NVR Ratings Report now.

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2. As of noon trading, Plum Creek Timber ( PCL) is down $0.28 (-0.6%) to $48.04 on average volume Thus far, 416,366 shares of Plum Creek Timber exchanged hands as compared to its average daily volume of 892,700 shares. The stock has ranged in price between $47.68-$48.36 after having opened the day at $48.32 as compared to the previous trading day's close of $48.32.

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 $7.7 billion and is part of the financial sector. The company has a P/E ratio of 33.5, above the S&P 500 P/E ratio of 17.7. Shares are up 8.9% year to date as of the close of trading on Friday. Currently there are 3 analysts that rate Plum Creek Timber a buy, 2 analysts rate it a sell, and 4 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. Get the full Plum Creek Timber Ratings Report now.

STOCKS TO BUY: 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, Lennar Corporation ( LEN) is down $1.13 (-2.9%) to $37.47 on average volume Thus far, 3.0 million shares of Lennar Corporation exchanged hands as compared to its average daily volume of 4.4 million shares. The stock has ranged in price between $36.90-$38.23 after having opened the day at $38.08 as compared to the previous trading day's close of $38.60.

Lennar Corporation, together with its subsidiaries, engages in homebuilding, financial services, and real estate businesses in the United States. Lennar Corporation has a market cap of $6.2 billion and is part of the industrial goods sector. The company has a P/E ratio of 11.7, below the S&P 500 P/E ratio of 17.7. Shares are down 0.2% year to date as of the close of trading on Friday. Currently there are 9 analysts that rate Lennar Corporation a buy, 1 analyst rates it a sell, and 7 rate it a hold.

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

STOCKS TO BUY: 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 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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