AWI, USG, OC, TOL And LEN, Pushing Materials & Construction Industry Downward

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Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading up 48 points (0.3%) at 16,465 as of Friday, Jan. 17, 2014, 11:55 AM ET. The NYSE advances/declines ratio sits at 1,451 issues advancing vs. 1,447 declining with 177 unchanged.

The Materials & Construction industry currently sits up 0.5% versus the S&P 500, which is down 0.1%. On the negative front, top decliners within the industry include PulteGroup ( PHM), down 1.5%, DR Horton ( DHI), down 1.3%, James Hardie Industries ( JHX), down 1.3% and Vulcan Materials Company ( VMC), down 0.8%. Top gainers within the industry include Fluor Corporation ( FLR), up 1.4%, Fastenal Company ( FAST), up 1.3% and Stericycle Incorporated ( SRCL), up 1.0%.

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

5. Armstrong World Industries ( AWI) is one of the companies pushing the Materials & Construction industry lower today. As of noon trading, Armstrong World Industries is down $1.24 (-2.0%) to $60.13 on average volume. Thus far, 409,347 shares of Armstrong World Industries exchanged hands as compared to its average daily volume of 775,800 shares. The stock has ranged in price between $59.36-$61.12 after having opened the day at $60.67 as compared to the previous trading day's close of $61.37.

Armstrong World Industries, Inc. engages in the design, manufacture, and sale of flooring products and ceiling systems worldwide. Armstrong World Industries has a market cap of $3.3 billion and is part of the industrial goods sector. The company has a P/E ratio of 37.1, above the S&P 500 P/E ratio of 17.7. Shares are up 6.5% year-to-date as of the close of trading on Thursday. Currently there are 4 analysts that rate Armstrong World Industries a buy, 1 analyst rates it a sell, and 4 rate it a hold.

TheStreet Ratings rates Armstrong World Industries as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, good cash flow from operations, increase in stock price during the past year and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Armstrong World Industries 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 $0.65 (-2.0%) to $31.33 on average volume. Thus far, 648,459 shares of USG exchanged hands as compared to its average daily volume of 1.7 million shares. The stock has ranged in price between $31.31-$32.39 after having opened the day at $32.00 as compared to the previous trading day's close of $31.98.

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 $3.4 billion and is part of the industrial goods sector. Shares are up 12.7% year-to-date as of the close of trading on Thursday. Currently there are 8 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, Owens-Corning ( OC) is down $0.57 (-1.4%) to $40.52 on light volume. Thus far, 559,278 shares of Owens-Corning exchanged hands as compared to its average daily volume of 1.5 million shares. The stock has ranged in price between $40.44-$41.07 after having opened the day at $40.92 as compared to the previous trading day's close of $41.09.

Owens Corning produces and sells glass fiber reinforcements and other materials for composite systems; and residential and commercial building materials worldwide. It operates in two segments, Composites and Building Materials. Owens-Corning has a market cap of $4.9 billion and is part of the industrial goods sector. The company has a P/E ratio of 75.9, above the S&P 500 P/E ratio of 17.7. Shares are up 0.9% year-to-date as of the close of trading on Thursday. Currently there are 10 analysts that rate Owens-Corning a buy, no analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates Owens-Corning as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Owens-Corning 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, Toll Brothers ( TOL) is down $0.35 (-1.0%) to $35.91 on light volume. Thus far, 527,588 shares of Toll Brothers exchanged hands as compared to its average daily volume of 3.3 million shares. The stock has ranged in price between $35.79-$36.20 after having opened the day at $36.14 as compared to the previous trading day's close of $36.26.

Toll Brothers, Inc., together with its subsidiaries, designs, builds, markets, and arranges finance for detached and attached homes in luxury residential communities in the Unites States. It is also involved in building and selling homes in urban infill markets. Toll Brothers has a market cap of $6.4 billion and is part of the industrial goods sector. The company has a P/E ratio of 37.4, above the S&P 500 P/E ratio of 17.7. Shares are down 2.0% year-to-date as of the close of trading on Thursday. Currently there are 7 analysts that rate Toll Brothers a buy, 2 analysts rate it a sell, and 3 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 and largely solid financial position with reasonable debt levels by most measures. 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.

1. As of noon trading, Lennar Corporation ( LEN) is down $0.72 (-1.9%) to $37.71 on average volume. Thus far, 1.8 million shares of Lennar Corporation exchanged hands as compared to its average daily volume of 4.7 million shares. The stock has ranged in price between $37.66-$38.37 after having opened the day at $38.35 as compared to the previous trading day's close of $38.43.

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 $6.2 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 2.9% year-to-date as of the close of trading on Thursday. Currently there are 7 analysts that rate Lennar Corporation a buy, no analysts rate it a sell, and 7 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 lackluster performance in the stock itself. 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 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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