NEW YORK (TheStreet) -- Shares of McDermott International (MDR) - Get Report are rallying in afternoon trading today, higher by 1.05% to $3.37, as West Texas Intermediate crude rebounds.

West Texas Intermediate erased earlier losses, moving higher by 1.82% to $51.44 at 2:26 p.m in New York. Brent fell 1.23% to $61.02.

U.S. crude futures extended gains on Wednesday after the Fed said the economy continued to expand across most regions and sectors from early January through mid-February, with auto sales and consumer spending rising in most Fed districts, Reuters reports.

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Oil prices started lower today on data that showed U.S. crude supplies hit another record high last week.

U.S. crude stockpiles increased by 10.3 million barrels to 444.4 million barrels last week, the Energy Information Administration said. The increase is more than double the average of analysts' estimates for an increase of 4.6 million barrels, according to data collected by the Wall Street Journal.

"The build is massive," Again Capital partner John Kilduff told the Journal.

Separately, The Street's David Peltier recently wrote 'McDermott Posts Surprise Profit' on Stocks Under $10, in which he gave some insight into the company's latest earnings report issued yesterday.

Here's a snippet of what he had to say:

"McDermott International [closed up over 28% yesterday], after management delivered better-than-expected results overnight. This Alert is an update on the company and we're not recommending any trades for the model portfolio.

McDermott had a surprise profit of $0.03 per share in the fourth quarter, as revenue increased 56% from the previous year, to $715.8 million. The company also saw operating income rise in each geographic segment.

Looking to 2015, management expects sales of $3.3 billion to $3.6 billion, which is ahead of the previous consensus analyst estimate. The higher outlook includes several new project awards in the Middle East. McDermott also continues to cut costs and is projecting operating income of $25 million to $50 million in 2015.

There were few surprises on the conference call and the company's finances remain stable, despite the recent decline in energy prices. We maintain our One rating on the stock, which is currently trading around $3.28."

-David Peltier, 'McDermott Posts Surprise Profit' originally published 3/3/2015 on Stocks Under $10.

McDermott International is a Houston-based engineering, procurement, construction and installation (EPCI) company focused on designing and executing complex offshore oil and gas projects worldwide.

Separately, the average recommendation of 12 brokers' estimates on the stock is a 3, or a "hold," according to Reuters. The mean price target is $4.15.

TheStreet Ratings team rates MCDERMOTT INTL INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate MCDERMOTT INTL INC (MDR) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself."

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

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