Fluor Corporation (FLR): Today's Featured Materials & Construction Laggard

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.

Fluor Corporation ( FLR) pushed the Materials & Construction industry lower today making it today's featured Materials & Construction laggard. The industry as a whole closed the day down 1.5%. By the end of trading, Fluor Corporation fell 69 cents (-1.2%) to $56 on average volume. Throughout the day, 1.5 million shares of Fluor Corporation exchanged hands as compared to its average daily volume of 1.6 million shares. The stock ranged in price between $55.36-$56.69 after having opened the day at $56.59 as compared to the previous trading day's close of $56.69. Other companies within the Materials & Construction industry that declined today were: China Advanced Construction Materials Group ( CADC), down 19.1%, M/I Homes ( MHO), down 8%, Meritage Homes Corporation ( MTH), down 7.3%, and India Globalization Capital ( IGC), down 6.8%.
  • ACTIVE STOCK TRADERS: Get full access to Jim Cramer's thoughts for less than $3/week - sometimes before he says them on TV! Start with a 14-Day Free Trial.

Fluor Corporation, through its subsidiaries, provides engineering, procurement, construction, maintenance, and project management services worldwide. Fluor Corporation has a market cap of $9.8 billion and is part of the industrial goods sector. The company has a P/E ratio of 16.6, equal to the average materials & construction industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 12.8% year to date as of the close of trading on Tuesday. Currently there are 16 analysts that rate Fluor Corporation a buy, no analysts rate it a sell, and one rates it a hold.

TheStreet Ratings rates Fluor Corporation as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, good cash flow from operations, growth in earnings per share and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

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).

FREE from Real Money's Jim Cramer: Winners and Losers Election 2012 - Steps to take NOW so you can profit no matter who is in charge! Free download now.
null

If you liked this article you might like

Have Faith That Fluor Will Recover

Have Faith That Fluor Will Recover

14 Stocks That Could Skyrocket From Trump's Border Wall With Mexico

Trader's Daily Notebook: Apple's Chart Looks Really Good

What Happened to American Society Is Happening to the Stock Market, Too: Market Recon