3 Materials & Construction Stocks Dragging The Industry Down

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. On the negative front, top decliners within the industry include Plum Creek Timber ( PCL), down 0.71, and Masco Corporation ( MAS), down 0.38. 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%.

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

3. Gafisa ( GFA) is one of the companies pushing the Materials & Construction industry lower today. As of noon trading, Gafisa is down $0.20 (-6.1%) to $3.09 on light volume Thus far, 387,666 shares of Gafisa exchanged hands as compared to its average daily volume of 1.9 million shares. The stock has ranged in price between $3.09-$3.26 after having opened the day at $3.25 as compared to the previous trading day's close of $3.29.

Gafisa S.A. operates as a homebuilder in Brazil. The company operates in three segments: Gafisa, Tenda, and Alphaville. Gafisa has a market cap of $651.8 million and is part of the industrial goods sector. Shares are down 29.2% year to date as of the close of trading on Thursday. Currently there is 1 analyst that rates Gafisa a buy, 1 analyst rates it a sell, and none rate it a hold.

TheStreet Ratings rates Gafisa as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow and poor profit margins. Get the full Gafisa 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.

2. As of noon trading, Vulcan Materials Company ( VMC) is down $0.56 (-1.0%) to $53.93 on light volume Thus far, 172,709 shares of Vulcan Materials Company exchanged hands as compared to its average daily volume of 626,700 shares. The stock has ranged in price between $53.75-$54.43 after having opened the day at $54.36 as compared to the previous trading day's close of $54.49.

Vulcan Materials Company engages in the production and sale of construction aggregates, as well as asphalt mix, ready-mixed concrete, and cement primarily in the United States. The company operates in four segments: Aggregates, Concrete, Asphalt Mix, and Cement. Vulcan Materials Company has a market cap of $6.9 billion and is part of the industrial goods sector. Shares are up 4.7% year to date as of the close of trading on Thursday. Currently there are 4 analysts that rate Vulcan Materials Company a buy, no analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates Vulcan Materials Company as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including poor profit margins and weak operating cash flow. Get the full Vulcan Materials Company 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, Fastenal Company ( FAST) is down $0.41 (-0.8%) to $48.15 on light volume Thus far, 336,712 shares of Fastenal Company exchanged hands as compared to its average daily volume of 1.6 million shares. The stock has ranged in price between $48.06-$48.89 after having opened the day at $48.45 as compared to the previous trading day's close of $48.56.

Fastenal Company, together with its subsidiaries, operates as a wholesaler and retailer of industrial and construction supplies in the United States, Canada, and internationally. The company offers fasteners and other industrial and construction supplies under the Fastenal name. Fastenal Company has a market cap of $14.2 billion and is part of the industrial goods sector. The company has a P/E ratio of 32.9, above the S&P 500 P/E ratio of 17.7. Shares are up 4.1% year to date as of the close of trading on Thursday. Currently there are 3 analysts that rate Fastenal Company a buy, 1 analyst rates it a sell, and 7 rate it a hold.

TheStreet Ratings rates Fastenal Company as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value. Get the full Fastenal Company 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 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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