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These stocks saw increased downside pressure on Wednesday, despite the market rallying for the third day this week.

KB Home (NYSE:KBH) tumbled over 15% after investors were not pleased with the company's Q2 results. Revenues fell 27% y/y to $271.7 million due to lower housing revenues, reflecting a 29% y/y decrease in the number of homes delivered to 1,265, partly offset by a 3% y/y increase in the average selling price to $213,400. EPS was a loss of $0.89 compared to a loss of $0.40 a year ago. Company-wide net orders decreased 11% to 1,998 in the second quarter of 2011 from 2,244 in the corresponding period of 2010. Second quarter net orders increased 53% from the first quarter of 2011. This compared favorably to a 17% sequential increase in net orders from the first to the second quarter of 2010.

At the end of the quarter, the company had 2,422 homes in backlog, representing projected future housing revenues of approximately $501.5 million, compared to a backlog of 3,175 homes, representing projected future housing revenues of approximately $648.2 million at May 31, 2010. The CEO also gave some remarks describing the current situation. "Although a broad-based housing recovery remains stalled, it appears that the worst of the crisis is behind the homebuilding industry as select markets for new homes are showing signs of stability. Uncertainty and caution about the economy are keeping many qualified homebuyers from entering the market, even though historically high housing affordability makes this a good time to buy. We believe the current housing market conditions will likely continue until there are meaningful and sustained improvements in job growth and consumer confidence."

EXFO (NASDAQ:EXFO) tumbled 16.9% after announcing weak quarterly results. Sales increased 20.9% to $67.6 million in the third quarter of fiscal 2011 from $55.9 million in the third quarter of 2010. Net bookings improved 7.3% to $61.3 million in the third quarter of fiscal 2011 from $57.1 million in the same period last year. The company's book-to-bill ratio was 0.91 in the third quarter of 2011. EPS was $0.03, compared to a net loss $0.01 per share, in the same period last year.

OMNOVA Solutions (NYSE:OMN) closed 15.7% lower after missing Q2 estimates. The company reported EPS of $0.14 vs. $0.33 a year ago. In the second quarter of 2011, there were a number of non-recurring charges totaling $1.1 million, resulting primarily from the acquisition of specialty chemicals producer ELIOKEM. The company added that it faced stiff headwinds in the second quarter with record high raw material costs, weaker demand in certain end-use markets and start-up costs for a new plant in China.

Mechel (NYSE:MTL) fell 4.1% after releasing disappointing Q1 results. Revenues increased by 54.4% to $2.9 billion compared to $1.9 billion in the same period last year. The operating income rose by 203.7% to $448.4 million or 15.28% of the net revenue, compared to the operating income of $147.6 million or 7.77% of the net revenue in the same period last year. Mechel's consolidated net income attributable to shareholders increased by 274.3% to $309.1 million compared to the consolidated net income attributable to shareholders of $82.6 million in 1Q10.

Ashford Hospitality Trust (NYSE:AHT) fell 4.4% after it had a weak pricing for its offering. The company priced its underwritten public offering of 7.0 million shares of its common stock at $12.50 per share. The stock ended the day at $12.44.

Source: 5 Stocks That Sold Off on Wednesday