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 up 0.2%. By the end of trading, Toll Brothers fell $0.40 (-1.3%) to $30.10 on average volume. Throughout the day, 3,953,137 shares of Toll Brothers exchanged hands as compared to its average daily volume of 4,488,800 shares. The stock ranged in price between $29.85-$30.63 after having opened the day at $30.57 as compared to the previous trading day's close of $30.50. Other companies within the Materials & Construction industry that declined today were: India Globalization Capital ( IGC), down 5.7%, MagneGas Corporation ( MNGA), down 5.6%, Comstock ( CHCI), down 5.2% and Pike Electric Corporation ( PIKE), down 4.6%.

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 $5.2 billion and is part of the industrial goods sector. Shares are down 5.7% year to date as of the close of trading on Wednesday. Currently there are 8 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 and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Louisiana-Pacific ( LPX), up 11.1%, Fastenal Company ( FAST), up 6.0%, Vertex Energy ( VTNR), up 5.5% and China Advanced Construction Materials Group ( CADC), up 5.3% , were all gainers within the materials & construction industry with Sherwin-Williams Company ( SHW) 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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