Toll Brothers Inc (TOL): 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.

Toll Brothers ( TOL) pushed the Materials & Construction industry lower today making it today's featured Materials & Construction laggard. The industry as a whole closed the day down 1.2%. By the end of trading, Toll Brothers fell $0.92 (-2.6%) to $33.99 on average volume. Throughout the day, 2,602,498 shares of Toll Brothers exchanged hands as compared to its average daily volume of 3,241,500 shares. The stock ranged in price between $33.86-$34.86 after having opened the day at $34.83 as compared to the previous trading day's close of $34.91. Other companies within the Materials & Construction industry that declined today were: Great Lakes Dredge & Dock ( GLDD), down 9.6%, Pike ( PIKE), down 7.3%, TRC Companies ( TRR), down 5.5% and PGT ( PGTI), down 4.8%.

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 $6.3 billion and is part of the industrial goods sector. The company has a P/E ratio of 29.8, above the S&P 500 P/E ratio of 17.7. Shares are down 5.7% year to date as of the close of trading on Monday. Currently there are 6 analysts that rate Toll Brothers a buy, 2 analysts rate it a sell, and 5 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, increase in net income, growth in earnings per share, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, India Globalization Capital ( IGC), up 20.0%, Primoris Services ( PRIM), up 5.2%, US Ecology ( ECOL), up 4.2% and MagneGas ( MNGA), up 3.3%.

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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