Toll Brothers Inc (TOL): 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.

Toll Brothers ( TOL) pushed the Materials & Construction industry lower today making it today's featured Materials & Construction laggard. The industry as a whole closed the day down 0.5%. By the end of trading, Toll Brothers fell $0.36 (-1.1%) to $31.95 on heavy volume. Throughout the day, 8,145,076 shares of Toll Brothers exchanged hands as compared to its average daily volume of 4,430,500 shares. The stock ranged in price between $31.00-$32.05 after having opened the day at $31.65 as compared to the previous trading day's close of $32.31. Other companies within the Materials & Construction industry that declined today were: PulteGroup ( PHM), down 10.3%, DR Horton ( DHI), down 8.6%, M/I Homes ( MHO), down 7.2% and Taylor Morrison Home ( TMHC), down 6.8%.

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 $5.8 billion and is part of the industrial goods sector. Shares are up 6.5% year to date as of the close of trading on Wednesday. Currently there are 9 analysts that rate Toll Brothers a buy, 2 analysts rate it a sell, and 5 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, notable return on equity, increase in stock price during the past year and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, Patrick Industries ( PATK), up 7.0%, MagneGas Corporation ( MNGA), up 5.5%, United States Lime & Minerals ( USLM), up 4.8% and Perma-Fix Environmental Services ( PESI), up 4.7% , were all gainers within the materials & construction industry with Cemex S.A.B. de C.V ( CX) being today's featured materials & construction industry leader.

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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