McDermott International Inc (MDR): Today's Featured Materials & Construction Laggard

McDermott International ( MDR) pushed the Materials & Construction industry lower today making it today's featured Materials & Construction laggard. The industry as a whole closed the day up 0.4%. By the end of trading, McDermott International fell 80 cents (-6.7%) to $11.20 on heavy volume. Throughout the day, 12.7 million shares of McDermott International exchanged hands as compared to its average daily volume of 3.9 million shares. The stock ranged in price between $11.04-$11.81 after having opened the day at $11.55 as compared to the previous trading day's close of $12. Other company's within the Materials & Construction industry that declined today were: Heckmann ( HEK), down 22.8%, Tutor Perini ( TPC), down 12.8%, Skyline Corporation ( SKY), down 11.5%, and Gafisa ( GFA), down 6.5%.

McDermott International, Inc. operates as an engineering, procurement, construction, and installation (EPCI) company worldwide. It focuses on designing and executing complex offshore oil and gas projects. McDermott International has a market cap of $2.76 billion and is part of the industrial goods sector. The company has a P/E ratio of 16.6, below the average materials & construction industry P/E ratio of 20.9 and below the S&P 500 P/E ratio of 17.7. Shares are up 17.8% year to date as of the close of trading on Monday. Currently there are 11 analysts that rate McDermott International a buy, one analyst rates it a sell, and one rates it a hold.

TheStreet Ratings rates McDermott International as a hold. 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 good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.

On the positive front, Nobility Homes ( NOBH), up 15.4%, Sharps Compliance Corporation ( SMED), up 11.1%, China Advanced Construction Materials Group ( CADC), up 9.5%, and Integrated Electrical Services ( IESC), up 7.3%, were all gainers within the materials & construction industry with Toll Brothers ( TOL) being today's featured materials & construction industry leader.

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).
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