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 up 0.7%. By the end of trading, KB Home fell $0.53 (-2.7%) to $19.01 on average volume. Throughout the day, 4,780,588 shares of KB Home exchanged hands as compared to its average daily volume of 3,828,000 shares. The stock ranged in price between $19.00-$19.59 after having opened the day at $19.54 as compared to the previous trading day's close of $19.54. Other companies within the Materials & Construction industry that declined today were: China Recycling Energy Corporation ( CREG), down 4.8%, Hovnanian ( HOV), down 4.0%, MagneGas Corporation ( MNGA), down 3.8% and TRC Companies ( TRR), down 3.4%.

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 $1.7 billion and is part of the industrial goods sector. Shares are up 10.0% year to date as of the close of trading on Wednesday. Currently there are 3 analysts that rate KB Home a buy, 5 analysts rate it a sell, and 7 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 poor profit margins.

On the positive front, Integrated Electrical Services ( IESC), up 12.9%, Industrial Services of America ( IDSA), up 8.6%, China Advanced Construction Materials Group ( CADC), up 6.8% and Guanwei Recycling ( GPRC), up 6.7% , were all gainers within the materials & construction industry with Fluor Corporation ( FLR) 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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