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

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

McDermott International ( MDR) pushed the Materials & Construction industry higher today making it today's featured materials & construction winner. The industry as a whole closed the day up 0.1%. By the end of trading, McDermott International rose 16 cents (1.4%) to $11.97 on average volume. Throughout the day, 4.8 million shares of McDermott International exchanged hands as compared to its average daily volume of 3.2 million shares. The stock ranged in a price between $11.70-$12.18 after having opened the day at $11.72 as compared to the previous trading day's close of $11.81. Other companies within the Materials & Construction industry that increased today were: KSW ( KSW), up 22.1%, Headwaters ( HW), up 6.2%, Hovnanian ( HOV), up 5.1%, and Matrix Service Company ( MTRX), up 4.6%.

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 $2.64 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 22.8 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 Friday. Currently there are 12 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 revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

On the negative front, India Globalization Capital ( IGC), down 17.6%, Gafisa ( GFA), down 6.1%, Pike Electric Corporation ( PIKE), down 4.1%, and US Concrete ( USCR), down 3.5%, were all laggards within the materials & construction industry with Quanta Services ( PWR) being today's materials & construction industry laggard.

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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