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.
Chicago Bridge & Iron Company (
CBI) pushed the Materials & Construction industry lower today making it today's featured Materials & Construction laggard. The industry as a whole closed the day down 0.4%. By the end of trading, Chicago Bridge & Iron Company fell 53 cents (-1.4%) to $37.66 on light volume. Throughout the day, 1.3 million shares of Chicago Bridge & Iron Company exchanged hands as compared to its average daily volume of 1.9 million shares. The stock ranged in price between $37.48-$38.19 after having opened the day at $38.05 as compared to the previous trading day's close of $38.19. Other companies within the Materials & Construction industry that declined today were:
Continental Materials Corporation (
CUO), down 13.5%,
Real Goods Solar (
RSOL), down 6.7%,
Sharps Compliance Corporation (
SMED), down 5.3%, and
China Advanced Construction Materials Group (
CADC), down 5.3%.
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Chicago Bridge & Iron Company N.V. provides conceptual design, technology, engineering, procurement, fabrication, construction, and commissioning services to energy and natural resource industries worldwide. Chicago Bridge & Iron Company has a market cap of $3.74 billion and is part of the
industrial goods sector. The company has a P/E ratio of 14, 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 1% year to date as of the close of trading on Tuesday. Currently there are nine analysts that rate Chicago Bridge & Iron Company a buy, no analysts rate it a sell, and four rate it a hold.
TheStreet Ratings rates Chicago Bridge & Iron Company as a
buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
On the positive front,
Gafisa (
GFA), up 4.2%,
Cementos Pacasmayo SAA ADR (
CPAC), up 3%,
Griffon Corporation (
GFF), up 2.9%, and
Headwaters (
HW), up 2.8%, were all gainers within the materials & construction industry with
Louisiana-Pacific (
LPX) 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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