Toll Brothers Inc (TOL): Today's Featured Materials & Construction Winner

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 higher today making it today's featured materials & construction winner. The industry as a whole closed the day up 0.8%. By the end of trading, Toll Brothers rose $0.92 (2.8%) to $33.52 on average volume. Throughout the day, 3,812,051 shares of Toll Brothers exchanged hands as compared to its average daily volume of 4,618,300 shares. The stock ranged in a price between $32.62-$33.82 after having opened the day at $32.69 as compared to the previous trading day's close of $32.60. Other companies within the Materials & Construction industry that increased today were: China Recycling Energy Corporation ( CREG), up 14.0%, PGT ( PGTI), up 7.5%, Trex Company ( TREX), up 6.1% and Caesarstone Sdot-Yam ( CSTE), up 5.3%.

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 $5.6 billion and is part of the industrial goods sector. Shares are up 0.8% year to date as of the close of trading on Thursday. 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 negative front, Homex Development ( HXM), down 15.1%, Integrated Electrical Services ( IESC), down 11.8%, Orion Marine Group ( ORN), down 4.5% and Perma-Fix Environmental Services ( PESI), down 3.3% , were all laggards within the materials & construction industry with Rayonier ( RYN) being today's materials & construction industry laggard.

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).

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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