3 Stocks Pulling The Materials & Construction Industry Downward

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 15 points (0.1%) at 15,467 as of Wednesday, July 17, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,986 issues advancing vs. 913 declining with 127 unchanged.

The Materials & Construction industry currently sits up 0.1% versus the S&P 500, which is up 0.3%. On the negative front, top decliners within the industry include AAON ( AAON), down 4.8%, and NCI Building Systems ( NCS), down 4.4%. Top gainers within the industry include M.D.C. Holdings ( MDC), up 3.1%, Toll Brothers ( TOL), up 2.1%, DR Horton ( DHI), up 1.8%, PulteGroup ( PHM), up 1.7% and Cemex S.A.B. de C.V ( CX), up 1.4%.

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

3. Trex Company ( TREX) is one of the companies pushing the Materials & Construction industry lower today. As of noon trading, Trex Company is down $1.66 (-3.3%) to $48.29 on light volume. Thus far, 76,150 shares of Trex Company exchanged hands as compared to its average daily volume of 226,600 shares. The stock has ranged in price between $48.18-$49.90 after having opened the day at $49.90 as compared to the previous trading day's close of $49.95.

Trex Company, Inc. manufactures and distributes wood/plastic composite products, and related accessories primarily for the residential and commercial decking and railing applications in the United States. Trex Company has a market cap of $883.1 million and is part of the industrial goods sector. Shares are up 34.2% year to date as of the close of trading on Tuesday. Currently there are 3 analysts that rate Trex Company a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Trex 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, impressive record of earnings per share growth, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Trex 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, Armstrong World Industries ( AWI) is down $0.94 (-1.9%) to $49.44 on average volume. Thus far, 147,533 shares of Armstrong World Industries exchanged hands as compared to its average daily volume of 318,900 shares. The stock has ranged in price between $49.40-$50.70 after having opened the day at $50.51 as compared to the previous trading day's close of $50.37.

Armstrong World Industries, Inc. engages in the design, manufacture, and sale of flooring products and ceiling systems worldwide. Armstrong World Industries has a market cap of $3.0 billion and is part of the industrial goods sector. Shares are down 1.3% year to date as of the close of trading on Tuesday. Currently there are 2 analysts that rate Armstrong World Industries a buy, 1 analyst rates it a sell, and 8 rate it a hold.

TheStreet Ratings rates Armstrong World Industries as a buy. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, good cash flow from operations, increase in stock price during the past year, largely solid financial position with reasonable debt levels by most measures 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 Armstrong World Industries 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, Masco Corporation ( MAS) is down $0.15 (-0.7%) to $20.42 on light volume. Thus far, 1.4 million shares of Masco Corporation exchanged hands as compared to its average daily volume of 5.1 million shares. The stock has ranged in price between $20.10-$20.69 after having opened the day at $20.65 as compared to the previous trading day's close of $20.57.

Masco Corporation engages in the manufacture, distribution, and installation of home improvement and building products primarily in North America and Europe. Masco Corporation has a market cap of $7.3 billion and is part of the industrial goods sector. Shares are up 23.5% year to date as of the close of trading on Tuesday. Currently there are 5 analysts that rate Masco Corporation a buy, 2 analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates Masco Corporation as a hold. The company's strengths can be seen in multiple areas, such as its 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 poor profit margins, weak operating cash flow and generally higher debt management risk. Get the full Masco 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 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).

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