Materials & Construction Stocks On The Rise With Help From 5 Stocks

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 65 points (-0.4%) at 15,111 as of Friday, June 14, 2013, 12:45 PM ET. The NYSE advances/declines ratio sits at 2,604 issues advancing vs. 474 declining with 57 unchanged.

The Materials & Construction industry currently sits down 0.13 versus the S&P 500, which is down 0.25. Top gainers within the industry include MasTec ( MTZ), up 2.4%, Ryland Group ( RYL), up 2.1%, Standard Pacific ( SPF), up 1.7%, Lennar Corporation ( LEN), up 1.7% and NVR ( NVR), up 0.8%. On the negative front, top decliners within the industry include Plum Creek Timber ( PCL), down 0.71, and Masco Corporation ( MAS), down 0.38.

TheStreet Ratings group would like to highlight 5 stocks pushing the industry higher today:

5. KB Home ( KBH) is one of the companies pushing the Materials & Construction industry higher today. As of noon trading, KB Home is up $0.56 (2.60) to $22.13 on average volume Thus far, 2.2 million shares of KB Home exchanged hands as compared to its average daily volume of 4.2 million shares. The stock has ranged in price between $21.49-$22.25 after having opened the day at $21.57 as compared to the previous trading day's close of $21.57.

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 36.5% year to date as of the close of trading on Thursday. 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.

4. As of noon trading, Chicago Bridge & Iron Company ( CBI) is up $0.66 (1.13) to $59.27 on light volume Thus far, 513,936 shares of Chicago Bridge & Iron Company exchanged hands as compared to its average daily volume of 1.9 million shares. The stock has ranged in price between $58.50-$59.64 after having opened the day at $58.77 as compared to the previous trading day's close of $58.61.

Chicago Bridge & Iron Company N.V., an energy infrastructure focused company, provides conceptual design, technology, engineering, procurement, fabrication, construction, and commissioning services to customers in the energy, petrochemical, and natural resource industries worldwide. Chicago Bridge & Iron Company has a market cap of $6.2 billion and is part of the industrial goods sector. The company has a P/E ratio of 20.7, above the S&P 500 P/E ratio of 17.7. Shares are up 26.5% year to date as of the close of trading on Thursday. Currently there are 10 analysts that rate Chicago Bridge & Iron Company a buy, 1 analyst rates it a sell, and 3 rate it a hold.

TheStreet Ratings rates Chicago Bridge & Iron Company as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Chicago Bridge & Iron Company 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, Toll Brothers ( TOL) is up $0.42 (1.27) to $33.46 on average volume Thus far, 1.8 million shares of Toll Brothers exchanged hands as compared to its average daily volume of 4.2 million shares. The stock has ranged in price between $33.14-$33.86 after having opened the day at $33.18 as compared to the previous trading day's close of $33.04.

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 $5.4 billion and is part of the industrial goods sector. The company has a P/E ratio of 10.8, below the S&P 500 P/E ratio of 17.7. Shares are up 2.2% year to date as of the close of trading on Thursday. 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, solid stock price performance, notable return on equity 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.

2. As of noon trading, DR Horton ( DHI) is up $0.34 (1.46) to $24.00 on average volume Thus far, 3.9 million shares of DR Horton exchanged hands as compared to its average daily volume of 6.0 million shares. The stock has ranged in price between $23.62-$24.15 after having opened the day at $23.64 as compared to the previous trading day's close of $23.66.

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 $7.2 billion and is part of the industrial goods sector. The company has a P/E ratio of 7.3, below the S&P 500 P/E ratio of 17.7. Shares are up 19.6% year to date as of the close of trading on Thursday. Currently there are 8 analysts that rate DR Horton a buy, 1 analyst rates it a sell, and 7 rate it a hold.

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.

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 $0.20 (0.96) to $21.14 on light volume Thus far, 3.0 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 $20.85-$21.25 after having opened the day at $20.89 as compared to the previous trading day's close of $20.94.

PulteGroup, Inc., through its subsidiaries, engages in homebuilding and financial services businesses primarily in the United States. PulteGroup has a market cap of $7.8 billion and is part of the industrial goods sector. The company has a P/E ratio of 25.7, above the S&P 500 P/E ratio of 17.7. Shares are up 15.3% year to date as of the close of trading on Thursday. 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 5 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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