3 Stocks Improving Performance Of 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 up today with the Dow Jones Industrial Average ( ^DJI) trading up 87 points (0.5%) at 16,606 as of Thursday, May 8, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,938 issues advancing vs. 1,065 declining with 159 unchanged.

The Materials & Construction industry currently sits up 0.4% versus the S&P 500, which is up 0.5%. Top gainers within the industry include Armstrong World Industries ( AWI), up 2.6%, Owens-Corning ( OC), up 2.6%, Masco ( MAS), up 2.2%, James Hardie Industries ( JHX), up 2.1% and USG ( USG), up 1.6%.

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

3. Toll Brothers ( TOL) is one of the companies pushing the Materials & Construction industry higher today. As of noon trading, Toll Brothers is up $0.29 (0.8%) to $34.36 on light volume. Thus far, 957,413 shares of Toll Brothers exchanged hands as compared to its average daily volume of 3.2 million shares. The stock has ranged in price between $33.93-$34.62 after having opened the day at $34.09 as compared to the previous trading day's close of $34.07.

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 $6.0 billion and is part of the industrial goods sector. Shares are down 7.9% year-to-date as of the close of trading on Wednesday. Currently there are 6 analysts who 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. Get the full Toll Brothers Ratings Report now.

3x UPSIDE POTENTIAL: 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, PulteGroup ( PHM) is up $0.17 (0.9%) to $18.37 on light volume. Thus far, 2.3 million shares of PulteGroup exchanged hands as compared to its average daily volume of 6.9 million shares. The stock has ranged in price between $18.16-$18.47 after having opened the day at $18.21 as compared to the previous trading day's close of $18.20.

PulteGroup, Inc., through its subsidiaries, engages in homebuilding and financial services businesses primarily in the United States. PulteGroup has a market cap of $6.9 billion and is part of the industrial goods sector. Shares are down 10.7% year-to-date as of the close of trading on Wednesday. Currently there are 7 analysts who 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 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 sub par growth in net income. Get the full PulteGroup Ratings Report now.

3x UPSIDE POTENTIAL: 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 up $0.38 (1.0%) to $38.94 on light volume. Thus far, 889,068 shares of Lennar exchanged hands as compared to its average daily volume of 4.1 million shares. The stock has ranged in price between $38.47-$39.17 after having opened the day at $38.51 as compared to the previous trading day's close of $38.56.

Lennar Corporation, together with its subsidiaries, is engaged in homebuilding activities in the United States. Lennar has a market cap of $6.7 billion and is part of the industrial goods sector. Shares are down 2.5% year-to-date as of the close of trading on Wednesday. Currently there are 4 analysts who 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, increase in net income and growth in earnings per share. 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.

3x UPSIDE POTENTIAL: 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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