KB Home (KBH): 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.

KB Home ( KBH) pushed the Materials & Construction industry lower today making it today's featured Materials & Construction laggard. The industry as a whole closed the day down 0.7%. By the end of trading, KB Home fell $0.40 (-2.1%) to $18.29 on average volume. Throughout the day, 3,020,152 shares of KB Home exchanged hands as compared to its average daily volume of 3,868,900 shares. The stock ranged in price between $18.15-$18.74 after having opened the day at $18.60 as compared to the previous trading day's close of $18.69. Other companies within the Materials & Construction industry that declined today were: Integrated Electrical Services ( IESC), down 4.8%, Sterling Construction Company ( STRL), down 4.1%, PGT ( PGTI), down 4.0% and Universal Forest Products ( UFPI), down 3.6%.

KB Home is engaged in homebuilding activities in the United States. It 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 $1.6 billion and is part of the industrial goods sector. Shares are up 2.2% year to date as of the close of trading on Tuesday. Currently there are 3 analysts that rate KB Home a buy, 4 analysts rate it a sell, and 8 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, weak operating cash flow and relatively poor performance when compared with the S&P 500 during the past year.

On the positive front, Desarrolladora Homex SAB de CV ADR ( HXM), up 9.8%, Pike ( PIKE), up 4.1%, China Advanced Construction Materials Group ( CADC), up 2.8% and Ecology and Environment ( EEI), up 2.6%.

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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