3 Stocks Driving The Materials & Construction Industry Higher

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 traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 82 points (0.5%) at 17,801 as of Friday, Nov. 21, 2014, 3:25 PM ET. The NYSE advances/declines ratio sits at 2,057 issues advancing vs. 968 declining with 155 unchanged.

The Materials & Construction industry as a whole closed the day up 0.5% versus the S&P 500, which was up 0.4%. Top gainers within the Materials & Construction industry included Tecnoglass ( TGLS), up 1.8%, Comstock ( CHCI), up 2.8%, India Globalization Capital ( IGC), up 2.2%, MagneGas ( MNGA), up 4.3% and New Home Company ( NWHM), up 3.4%.

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

MagneGas ( MNGA) is one of the companies that pushed the Materials & Construction industry higher today. MagneGas was up $0.03 (4.3%) to $0.85 on light volume. Throughout the day, 325,490 shares of MagneGas exchanged hands as compared to its average daily volume of 603,400 shares. The stock ranged in a price between $0.82-$0.86 after having opened the day at $0.82 as compared to the previous trading day's close of $0.82.

MagneGas has a market cap of $29.5 million and is part of the industrial goods sector. Shares are up 85.3% year-to-date as of the close of trading on Thursday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

At the close, India Globalization Capital ( IGC) was up $0.02 (2.2%) to $0.75 on light volume. Throughout the day, 7,214 shares of India Globalization Capital exchanged hands as compared to its average daily volume of 106,900 shares. The stock ranged in a price between $0.71-$0.76 after having opened the day at $0.73 as compared to the previous trading day's close of $0.73.

India Globalization Capital has a market cap of $10.9 million and is part of the industrial goods sector. Shares are down 24.3% year-to-date as of the close of trading on Thursday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Comstock ( CHCI) was another company that pushed the Materials & Construction industry higher today. Comstock was up $0.03 (2.8%) to $1.09 on heavy volume. Throughout the day, 108,044 shares of Comstock exchanged hands as compared to its average daily volume of 60,400 shares. The stock ranged in a price between $1.04-$1.15 after having opened the day at $1.06 as compared to the previous trading day's close of $1.06.

Comstock Holding Companies, Inc. operates as a real estate development and construction services company in the United States. The company operates through three segments: Homebuilding, Multi-family, and Real Estate Services. Comstock has a market cap of $20.2 million and is part of the industrial goods sector. Shares are down 46.5% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate Comstock a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Comstock as a sell. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on CHCI go as follows:

  • The debt-to-equity ratio is very high at 28.20 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Household Durables industry and the overall market, COMSTOCK HOLDING COS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for COMSTOCK HOLDING COS INC is rather low; currently it is at 17.78%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -0.86% trails that of the industry average.
  • CHCI's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 45.96%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • COMSTOCK HOLDING COS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. During the past fiscal year, COMSTOCK HOLDING COS INC continued to lose money by earning -$0.10 versus -$0.47 in the prior year.

You can view the full analysis from the report here: Comstock Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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.

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