PulteGroup Inc (PHM): Today's Featured Materials & Construction Winner

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 higher today making it today's featured materials & construction winner. The industry as a whole closed the day up 0.3%. By the end of trading, PulteGroup rose $0.34 (1.8%) to $19.77 on heavy volume. Throughout the day, 12,537,836 shares of PulteGroup exchanged hands as compared to its average daily volume of 7,399,500 shares. The stock ranged in a price between $19.36-$20.78 after having opened the day at $20.34 as compared to the previous trading day's close of $19.43. Other companies within the Materials & Construction industry that increased today were: Tile Shop Holdings ( TTS), up 6.6%, Real Goods Solar ( RSOL), up 5.3%, Comstock ( CHCI), up 4.5% and A V Homes ( AVHI), up 4.3%.

PulteGroup, Inc., through its subsidiaries, engages in homebuilding and financial services businesses primarily in the United States. PulteGroup has a market cap of $7.5 billion and is part of the industrial goods sector. The company has a P/E ratio of 3.1, below the S&P 500 P/E ratio of 17.7. Shares are down 4.6% year to date as of the close of trading on Wednesday. Currently there are 4 analysts that rate PulteGroup a buy, 2 analysts rate it a sell, and 7 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. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the negative front, Sharps Compliance Corporation ( SMED), down 5.8%, Stock Building Supply Holdings ( STCK), down 4.7%, Industrial Services of America ( IDSA), down 4.6% and India Globalization Capital ( IGC), down 4.2% , were all laggards within the materials & construction industry with Armstrong World Industries ( AWI) being today's materials & construction industry laggard.

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).

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