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 up 0.2%. By the end of trading, PulteGroup fell $0.36 (-2.0%) to $17.99 on average volume. Throughout the day, 8,225,284 shares of PulteGroup exchanged hands as compared to its average daily volume of 9,266,800 shares. The stock ranged in price between $17.84-$18.32 after having opened the day at $18.21 as compared to the previous trading day's close of $18.35. Other companies within the Materials & Construction industry that declined today were: Pure Cycle Corporation ( PCYO), down 8.6%, TRI Pointe Homes ( TPH), down 3.6%, TRC Companies ( TRR), down 3.4% and Industrial Services of America ( IDSA), down 2.9%.

PulteGroup, Inc., through its subsidiaries, engages in homebuilding and financial services businesses primarily in the United States. PulteGroup has a market cap of $7.1 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 1.5% 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 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.

On the positive front, India Globalization Capital ( IGC), up 24.4%, Guanwei Recycling ( GPRC), up 21.7%, Desarrolladora Homex SAB de CV ADR ( HXM), up 5.5% and Gafisa ( GFA), up 5.2% , were all gainers within the materials & construction industry with NVR ( NVR) 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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