5 Materials & Construction Stocks Dragging The Industry Down

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.

Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 22 points (-0.1%) at 16,065 as of Monday, Dec. 2, 2013, 11:45 AM ET. The NYSE advances/declines ratio sits at 1,030 issues advancing vs. 1,883 declining with 116 unchanged.

The Materials & Construction industry currently sits down 0.6% versus the S&P 500, which is unchanged. A company within the industry that fell today was Weyerhaeuser ( WY), up 1.5%. A company within the industry that increased today was Waste Connections ( WCN), up 1.1%.

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

5. Darling International ( DAR) is one of the companies pushing the Materials & Construction industry lower today. As of noon trading, Darling International is down $0.61 (-2.9%) to $20.12 on light volume. Thus far, 224,511 shares of Darling International exchanged hands as compared to its average daily volume of 964,200 shares. The stock has ranged in price between $20.06-$20.69 after having opened the day at $20.67 as compared to the previous trading day's close of $20.73.

Darling International Inc. provides rendering, used cooking oil, and bakery residual recycling and recovery solutions to the food industry. The company operates in two segments, Rendering and Bakery. Darling International has a market cap of $2.4 billion and is part of the industrial goods sector. The company has a P/E ratio of 20.9, above the S&P 500 P/E ratio of 17.7. Shares are up 29.2% year to date as of the close of trading on Friday. Currently there are 2 analysts that rate Darling International a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Darling International as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share. Get the full Darling International 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, USG ( USG) is down $0.54 (-2.0%) to $26.85 on light volume. Thus far, 498,060 shares of USG exchanged hands as compared to its average daily volume of 1.5 million shares. The stock has ranged in price between $26.76-$27.45 after having opened the day at $27.35 as compared to the previous trading day's close of $27.39.

USG Corporation, through its subsidiaries, engages in the manufacture and distribution of building materials worldwide. The company operates in three reportable segments: North American Gypsum, Worldwide Ceilings, and Building Products Distribution. USG has a market cap of $3.0 billion and is part of the industrial goods sector. Shares are down 2.0% year to date as of the close of trading on Friday. Currently there are 9 analysts that rate USG a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates USG as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins. Get the full USG 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, Waste Management ( WM) is down $0.26 (-0.6%) to $45.06 on average volume. Thus far, 903,203 shares of Waste Management exchanged hands as compared to its average daily volume of 2.0 million shares. The stock has ranged in price between $45.04-$45.36 after having opened the day at $45.27 as compared to the previous trading day's close of $45.32.

Waste Management, Inc. provides waste management services to residential, commercial, industrial, and municipal customers in North America. It offers collection, transfer, recycling and resource recovery, and disposal services. Waste Management has a market cap of $21.4 billion and is part of the industrial goods sector. The company has a P/E ratio of 23.1, above the S&P 500 P/E ratio of 17.7. Shares are up 35.3% year to date as of the close of trading on Friday. Currently there is 1 analyst that rates Waste Management a buy, no analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates Waste Management as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, reasonable valuation levels, expanding profit margins and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook. Get the full Waste Management 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, DR Horton ( DHI) is down $0.28 (-1.4%) to $19.60 on light volume. Thus far, 1.6 million shares of DR Horton exchanged hands as compared to its average daily volume of 8.1 million shares. The stock has ranged in price between $19.50-$19.82 after having opened the day at $19.80 as compared to the previous trading day's close of $19.88.

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 $6.5 billion and is part of the industrial goods sector. The company has a P/E ratio of 15.1, below the S&P 500 P/E ratio of 17.7. Shares are up 1.4% 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.

1. As of noon trading, PulteGroup ( PHM) is down $0.19 (-1.0%) to $18.57 on light volume. Thus far, 1.5 million shares of PulteGroup exchanged hands as compared to its average daily volume of 9.4 million shares. The stock has ranged in price between $18.50-$18.80 after having opened the day at $18.79 as compared to the previous trading day's close of $18.76.

PulteGroup, Inc., through its subsidiaries, engages in homebuilding and financial services businesses primarily in the United States. PulteGroup has a market cap of $7.2 billion and is part of the industrial goods sector. The company has a P/E ratio of 3.0, below the S&P 500 P/E ratio of 17.7. Shares are up 3.8% 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.

If you are interested in one of these 5 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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