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 0.3%. By the end of trading, KB Home rose $0.73 (4.3%) to $17.76 on heavy volume. Throughout the day, 12,558,200 shares of KB Home exchanged hands as compared to its average daily volume of 4,940,400 shares. The stock ranged in a price between $16.72-$18.47 after having opened the day at $16.89 as compared to the previous trading day's close of $17.03. Other companies within the Materials & Construction industry that increased today were: Sharps Compliance Corporation ( SMED), up 7.7%, Caesarstone Sdot-Yam ( CSTE), up 4.9%, Headwaters ( HW), up 4.5% and Ryland Group ( RYL), up 4.4%.

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 $1.5 billion and is part of the industrial goods sector. Shares are up 11.6% year to date as of the close of trading on Monday. Currently there are 3 analysts that rate KB Home a buy, 2 analysts rate it a sell, and 10 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, Perma-Fix Environmental Services ( PESI), down 9.8%, Nuverra Environmental Solutions ( NES), down 5.5%, Nuverra Environmental Solutions ( HEK), down 5.5% and MagneGas Corporation ( MNGA), down 4.8% , were all laggards within the materials & construction industry with Stericycle Incorporated ( SRCL) 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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