KB Home (KBH): 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.

KB Home ( KBH) pushed the Materials & Construction industry higher today making it today's featured materials & construction winner. The industry as a whole closed the day up 0.2%. By the end of trading, KB Home rose $0.19 (1.2%) to $16.63 on light volume. Throughout the day, 3,032,442 shares of KB Home exchanged hands as compared to its average daily volume of 4,889,800 shares. The stock ranged in a price between $16.21-$16.85 after having opened the day at $16.49 as compared to the previous trading day's close of $16.44. Other companies within the Materials & Construction industry that increased today were: Vertex Energy ( VTNR), up 16.2%, Avalon Holdings ( AWX), up 12.5%, Goldfield ( GV), up 6.2% and Stock Building Supply Holdings ( STCK), up 6.2%.

KB Home operates as a homebuilding and financial services company in the United States. The company constructs and sells various homes, including attached and detached single-family residential homes, townhomes, and condominiums primarily for first-time, move-up, and active adult homebuyers. KB Home has a market cap of $1.4 billion and is part of the industrial goods sector. Shares are up 4.1% year to date as of the close of trading on Friday. Currently there are 3 analysts that rate KB Home a buy, 2 analysts rate it a sell, and 12 rate it a hold.

TheStreet Ratings rates KB Home as a hold. The company's strengths can be seen in multiple areas, such as its robust 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 generally higher debt management risk, weak operating cash flow and poor profit margins.

On the negative front, Nuverra Environmental Solutions ( NES), down 11.8%, Gafisa ( GFA), down 8.1%, Empresas ICA S.A.B. de C.V ( ICA), down 5.3% and China Advanced Construction Materials Group ( CADC), down 5.1% , were all laggards within the materials & construction industry with Cemex S.A.B. de C.V ( CX) 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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