PulteGroup Inc (PHM): 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.

PulteGroup ( PHM) pushed the Materials & Construction industry lower today making it today's featured Materials & Construction laggard. The industry as a whole closed the day down 1.2%. By the end of trading, PulteGroup fell $0.41 (-2.4%) to $16.50 on light volume. Throughout the day, 6,714,765 shares of PulteGroup exchanged hands as compared to its average daily volume of 10,910,300 shares. The stock ranged in price between $16.40-$17.09 after having opened the day at $17.06 as compared to the previous trading day's close of $16.91. Other companies within the Materials & Construction industry that declined today were: Texas Industries ( TXI), down 11.8%, Pure Cycle Corporation ( PCYO), down 5.8%, Beazer Homes USA ( BZH), down 5.0% and TRI Pointe Homes ( TPH), down 3.6%.

PulteGroup, Inc., through its subsidiaries, engages in homebuilding and financial services businesses primarily in the United States. PulteGroup has a market cap of $6.6 billion and is part of the industrial goods sector. Shares are down 5.8% year to date as of the close of trading on Wednesday. Currently there are 5 analysts that rate PulteGroup a buy, no analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates PulteGroup as a hold. 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 reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and poor profit margins.

On the positive front, MagneGas Corporation ( MNGA), up 4.3%, Avalon Holdings ( AWX), up 4.1%, Stock Building Supply Holdings ( STCK), up 3.6% and China Advanced Construction Materials Group ( CADC), up 3.4%.

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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