DR Horton Inc (DHI): Today's Featured Materials & Construction Laggard

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.

DR Horton ( DHI) pushed the Materials & Construction industry lower today making it today's featured Materials & Construction laggard. The industry as a whole closed the day down 1.5%. By the end of trading, DR Horton fell $0.60 (-2.8%) to $21.20 on average volume. Throughout the day, 7,765,732 shares of DR Horton exchanged hands as compared to its average daily volume of 7,047,300 shares. The stock ranged in price between $21.08-$22.24 after having opened the day at $22.12 as compared to the previous trading day's close of $21.80. Other companies within the Materials & Construction industry that declined today were: China Advanced Construction Materials Group ( CADC), down 9.1%, China Recycling Energy Corporation ( CREG), down 6.8%, Toll Brothers ( TOL), down 6.2% and M.D.C. Holdings ( MDC), down 5.9%.

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 $7.0 billion and is part of the industrial goods sector. Shares are up 9.1% year to date as of the close of trading on Tuesday. Currently there are 9 analysts that rate DR Horton a buy, 1 analyst rates it a sell, and 6 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, compelling growth in net income and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, Pure Cycle Corporation ( PCYO), up 2.9%, Xinyuan Real Estate ( XIN), up 2.8%, Ecology and Environment ( EEI), up 2.7% and Dycom Industries ( DY), up 2.2%.

For investors not wanting singular stock exposure, 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).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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