3 Stocks Pulling 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 127 points (0.8%) at 15,307 as of Tuesday, June 18, 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 up 0.5% versus the S&P 500, which is up 0.6%. A company within the industry that fell today was James Hardie Industries ( JHX), up 2.43. Top gainers within the industry include EMCOR Group ( EME), up 5.6%, McDermott International ( MDR), up 3.1%, MasTec ( MTZ), up 3.1%, Rayonier ( RYN), up 1.4% and Quanta Services ( PWR), up 1.2%.

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

3. Fastenal Company ( FAST) is one of the companies pushing the Materials & Construction industry lower today. As of noon trading, Fastenal Company is down $0.39 (-0.8%) to $46.81 on average volume Thus far, 1.0 million 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 $46.75-$47.39 after having opened the day at $47.27 as compared to the previous trading day's close of $47.20.

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 $14.1 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 1.2% year to date as of the close of trading on Monday. 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.

2. As of noon trading, Lennar Corporation ( LEN) is down $0.46 (-1.2%) to $38.86 on average volume Thus far, 2.9 million shares of Lennar Corporation exchanged hands as compared to its average daily volume of 4.6 million shares. The stock has ranged in price between $38.36-$39.25 after having opened the day at $39.23 as compared to the previous trading day's close of $39.32.

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 $6.3 billion and is part of the industrial goods sector. The company has a P/E ratio of 11.9, below the S&P 500 P/E ratio of 17.7. Shares are up 1.7% year to date as of the close of trading on Monday. 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.

1. As of noon trading, PulteGroup ( PHM) is down $0.26 (-1.2%) to $21.16 on average volume Thus far, 3.6 million shares of PulteGroup exchanged hands as compared to its average daily volume of 9.3 million shares. The stock has ranged in price between $20.87-$21.45 after having opened the day at $21.39 as compared to the previous trading day's close of $21.42.

PulteGroup, Inc., through its subsidiaries, engages in homebuilding and financial services businesses primarily in the United States. PulteGroup has a market cap of $8.1 billion and is part of the industrial goods sector. The company has a P/E ratio of 26.7, above the S&P 500 P/E ratio of 17.7. Shares are up 18.0% year to date as of the close of trading on Monday. 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.

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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