3 Stocks Dragging In The Materials & Construction Industry

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.

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 4 points (0.0%) at 16,511 as of Wednesday, April 23, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,718 issues advancing vs. 1,280 declining with 133 unchanged.

The Materials & Construction industry currently sits down 0.9% versus the S&P 500, which is down 0.1%. On the negative front, top decliners within the industry include Meritage Homes ( MTH), down 8.7%, Owens-Corning ( OC), down 3.1%, USG ( USG), down 1.6%, James Hardie Industries ( JHX), down 1.2% and Chicago Bridge & Iron Company ( CBI), down 1.1%.

TheStreet would like to highlight 3 stocks pushing the industry lower today:

3. PulteGroup ( PHM) is one of the companies pushing the Materials & Construction industry lower today. As of noon trading, PulteGroup is down $0.20 (-1.1%) to $18.46 on average volume. Thus far, 5.5 million shares of PulteGroup exchanged hands as compared to its average daily volume of 7.5 million shares. The stock has ranged in price between $18.20-$18.69 after having opened the day at $18.68 as compared to the previous trading day's close of $18.67.

PulteGroup, Inc., through its subsidiaries, engages in homebuilding and financial services businesses primarily in the United States. PulteGroup has a market cap of $7.1 billion and is part of the industrial goods sector. Shares are down 8.3% year-to-date as of the close of trading on Tuesday. Currently there are 7 analysts that rate PulteGroup a buy, 4 analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates PulteGroup as a buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full PulteGroup 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, DR Horton ( DHI) is down $0.57 (-2.6%) to $21.27 on heavy volume. Thus far, 5.5 million shares of DR Horton exchanged hands as compared to its average daily volume of 7.0 million shares. The stock has ranged in price between $21.22-$21.73 after having opened the day at $21.72 as compared to the previous trading day's close of $21.84.

D.R. Horton, Inc. operates as a homebuilding company. It is engaged in the acquisition and development of land; and construction and sale of residential homes in 27 states and 78 markets in the United States under the D.R. Horton, America's Builder, Emerald Homes, and Breland Homes. DR Horton has a market cap of $7.0 billion and is part of the industrial goods sector. Shares are down 2.1% year-to-date as of the close of trading on Tuesday. Currently there are 7 analysts that rate DR Horton a buy, 1 analyst rates it a sell, and 5 rate it a hold.

TheStreet Ratings rates DR Horton as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income, attractive valuation levels, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full DR Horton 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 ( LEN) is down $0.52 (-1.4%) to $37.91 on average volume. Thus far, 2.8 million shares of Lennar exchanged hands as compared to its average daily volume of 4.6 million shares. The stock has ranged in price between $37.32-$38.45 after having opened the day at $38.45 as compared to the previous trading day's close of $38.43.

Lennar Corporation, together with its subsidiaries, is engaged in homebuilding activities in the United States. Lennar has a market cap of $6.6 billion and is part of the industrial goods sector. Shares are down 2.9% year-to-date as of the close of trading on Tuesday. Currently there are 4 analysts that rate Lennar a buy, no analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates Lennar as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share, increase in net income and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Get the full Lennar 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 3 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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