KB Home (KBH): Today's Featured Industrial Goods 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.

KB Home ( KBH) pushed the Industrial Goods sector lower today making it today's featured Industrial Goods laggard. The sector as a whole closed the day up 1.1%. By the end of trading, KB Home fell $0.38 (-2.1%) to $17.69 on light volume. Throughout the day, 2,948,785 shares of KB Home exchanged hands as compared to its average daily volume of 4,026,800 shares. The stock ranged in price between $17.66-$18.17 after having opened the day at $18.11 as compared to the previous trading day's close of $18.07. Other companies within the Industrial Goods sector that declined today were: IntriCon Corporation ( IIN), down 8.1%, Comstock ( CHCI), down 6.9%, Integrated Electrical Services ( IESC), down 6.8% and Hovnanian ( HOV), down 5.2%.

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 materials & construction industry. The company has a P/E ratio of 39.7, above the S&P 500 P/E ratio of 17.7. Shares are down 1.1% year to date as of the close of trading on Monday. Currently there are 3 analysts that rate KB Home a buy, 3 analysts rate it a sell, and 9 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 impressive record of earnings per share growth, compelling growth in net income and revenue growth. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins.

On the positive front, MagneGas Corporation ( MNGA), up 42.6%, Ballard Power Systems ( BLDP), up 33.5%, Clean Diesel Technologies ( CDTI), up 29.8% and Intellicheck Mobilisa ( IDN), up 16.2% , were all gainers within the industrial goods sector with Lockheed Martin Corporation ( LMT) being today's featured industrial goods sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the industrial goods sector could consider Industrial Select Sector SPDR ( XLI) while those bearish on the industrial goods sector could consider ProShares Short Dow 30 ( DOG).

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 liked this article you might like

Housing Stocks Fall as Fed Leaves Rates Unchanged

These Stocks Are Ready to Reverse Course

Mizuho Cuts Ratings for Homebuilders KB Home, PulteGroup