5 Stocks Pulling The Materials & Construction Industry Downward

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.

All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 31 points (0.2%) at 16,096 as of Monday, Nov. 25, 2013, 11:45 AM ET. The NYSE advances/declines ratio sits at 1,434 issues advancing vs. 1,496 declining with 119 unchanged.

The Materials & Construction industry currently sits down 0.2% versus the S&P 500, which is up 0.1%. On the negative front, top decliners within the industry include Fastenal Company ( FAST), down 1.6%, Chicago Bridge & Iron Company ( CBI), down 1.4%, Plum Creek Timber ( PCL), down 0.8%, Waste Management ( WM), down 0.6% and Republic Services ( RSG), down 0.5%.

TheStreet would like to highlight 5 stocks pushing the industry lower today:

5. Toll Brothers ( TOL) is one of the companies pushing the Materials & Construction industry lower today. As of noon trading, Toll Brothers is down $0.32 (-0.9%) to $33.41 on light volume. Thus far, 806,718 shares of Toll Brothers exchanged hands as compared to its average daily volume of 3.6 million shares. The stock has ranged in price between $33.20-$33.82 after having opened the day at $33.80 as compared to the previous trading day's close of $33.73.

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 $6.0 billion and is part of the industrial goods sector. The company has a P/E ratio of 11.9, below the S&P 500 P/E ratio of 17.7. Shares are up 4.8% year to date as of the close of trading on Friday. Currently there are 7 analysts that rate Toll Brothers a buy, 2 analysts rate it a sell, and 4 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 and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Toll Brothers Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

4. As of noon trading, Sherwin-Williams Company ( SHW) is down $1.84 (-1.0%) to $185.73 on light volume. Thus far, 108,470 shares of Sherwin-Williams Company exchanged hands as compared to its average daily volume of 686,000 shares. The stock has ranged in price between $185.66-$187.52 after having opened the day at $187.49 as compared to the previous trading day's close of $187.57.

The Sherwin-Williams Company engages in the development, manufacture, distribution, and sale of paints, coatings, and related products to professional, industrial, commercial, and retail customers primarily in North America, South America, Europe, Asia, and the Caribbean region. Sherwin-Williams Company has a market cap of $18.9 billion and is part of the basic materials sector. The company has a P/E ratio of 27.6, above the S&P 500 P/E ratio of 17.7. Shares are up 21.9% year to date as of the close of trading on Friday. Currently there are 6 analysts that rate Sherwin-Williams Company a buy, 1 analyst rates it a sell, and 6 rate it a hold.

TheStreet Ratings rates Sherwin-Williams Company as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, expanding profit margins, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Get the full Sherwin-Williams Company Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

3. As of noon trading, DR Horton ( DHI) is down $0.25 (-1.3%) to $18.80 on light volume. Thus far, 2.3 million shares of DR Horton exchanged hands as compared to its average daily volume of 8.0 million shares. The stock has ranged in price between $18.66-$19.13 after having opened the day at $19.05 as compared to the previous trading day's close of $19.05.

D.R. Horton, Inc. operates as a homebuilding company. The company engages in the acquisition and development of land; and construction and sale of residential homes in 26 states and 77 markets in the United States primarily under the D.R. Horton, America's Builder name. DR Horton has a market cap of $6.3 billion and is part of the industrial goods sector. The company has a P/E ratio of 14.6, below the S&P 500 P/E ratio of 17.7. Shares are down 1.7% year to date as of the close of trading on Friday. Currently there are 9 analysts that rate DR Horton a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates DR Horton 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, attractive valuation levels, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full DR Horton Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

2. As of noon trading, PulteGroup ( PHM) is down $0.30 (-1.6%) to $17.92 on light volume. Thus far, 1.8 million shares of PulteGroup exchanged hands as compared to its average daily volume of 9.6 million shares. The stock has ranged in price between $17.80-$18.36 after having opened the day at $18.35 as compared to the previous trading day's close of $18.22.

PulteGroup, Inc., through its subsidiaries, engages in homebuilding and financial services businesses primarily in the United States. PulteGroup has a market cap of $7.0 billion and is part of the industrial goods sector. The company has a P/E ratio of 2.9, below the S&P 500 P/E ratio of 17.7. Shares are up 0.3% year to date as of the close of trading on Friday. 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 buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, robust revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full PulteGroup Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

1. As of noon trading, Lennar Corporation ( LEN) is down $0.44 (-1.3%) to $34.11 on light volume. Thus far, 1.5 million shares of Lennar Corporation exchanged hands as compared to its average daily volume of 5.5 million shares. The stock has ranged in price between $33.82-$34.68 after having opened the day at $34.66 as compared to the previous trading day's close of $34.55.

Lennar Corporation, together with its subsidiaries, engages in homebuilding, financial services, and real estate businesses in the United States. Lennar Corporation has a market cap of $5.7 billion and is part of the industrial goods sector. The company has a P/E ratio of 17.7, equal to the S&P 500 P/E ratio of 17.7. Shares are down 10.7% year to date as of the close of trading on Friday. Currently there are 9 analysts that rate Lennar Corporation a buy, no analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates Lennar Corporation as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Get the full Lennar Corporation Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

If you are interested in one of these 3 stocks, 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).
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