3 Stocks Pushing The Materials & Construction Industry Lower

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

Two out of the three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 24 points (0.2%) at 14,421 as of Monday, March 11, 2013, 12:45 PM ET. The NYSE advances/declines ratio sits at 1,375 issues advancing vs. 1,531 declining with 142 unchanged.

The Materials & Construction industry currently sits up 0.1% versus the S&P 500, which is up 0.1%. A company within the industry that fell today was Fluor Corporation ( FLR), up 0.8%.

TheStreet Ratings group would like to highlight 3 stocks pushing the industry lower today:

3. McDermott International ( MDR) is one of the companies pushing the Materials & Construction industry lower today. As of noon trading, McDermott International is down $0.15 (-1.4%) to $10.73 on light volume Thus far, 757,074 shares of McDermott International exchanged hands as compared to its average daily volume of 3.4 million shares. The stock has ranged in price between $10.65-$10.88 after having opened the day at $10.88 as compared to the previous trading day's close of $10.88.

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 $2.5 billion and is part of the industrial goods sector. The company has a P/E ratio of 16.6, 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 9 analysts that rate McDermott International a buy, 1 analyst rates it a sell, and 3 rate 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, largely solid financial position with reasonable debt levels by most measures and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, a generally disappointing performance in the stock itself and poor profit margins. Get the full McDermott International Ratings Report now.

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2. As of noon trading, Eagle Materials ( EXP) is down $1.55 (-2.2%) to $70.02 on average volume Thus far, 569,733 shares of Eagle Materials exchanged hands as compared to its average daily volume of 799,800 shares. The stock has ranged in price between $69.61-$71.10 after having opened the day at $70.08 as compared to the previous trading day's close of $71.57.

Eagle Materials Inc. manufactures and distributes building products used in residential, industrial, commercial, and infrastructure construction in the United States. The company operates in four segments: Cement, Gypsum Wallboard, Recycled Paperboard, and Concrete and Aggregates. Eagle Materials has a market cap of $3.5 billion and is part of the industrial goods sector. The company has a P/E ratio of 55.1, above the S&P 500 P/E ratio of 17.7. Shares are up 22.3% year to date as of the close of trading on Friday. Currently there is 1 analyst that rates Eagle Materials a buy, no analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates Eagle Materials as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Eagle Materials Ratings Report now.

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1. As of noon trading, PulteGroup ( PHM) is down $0.19 (-0.9%) to $20.07 on light volume Thus far, 3.0 million shares of PulteGroup exchanged hands as compared to its average daily volume of 9.3 million shares. The stock has ranged in price between $20.05-$20.44 after having opened the day at $20.25 as compared to the previous trading day's close of $20.26.

PulteGroup, Inc., through its subsidiaries, engages in homebuilding and financial services businesses primarily in the United States. PulteGroup has a market cap of $7.8 billion and is part of the industrial goods sector. The company has a P/E ratio of 37.4, above the S&P 500 P/E ratio of 17.7. Shares are up 11.6% year to date as of the close of trading on Friday. Currently there are 6 analysts that rate PulteGroup a buy, 1 analyst rates it a sell, and 6 rate it a hold.

TheStreet Ratings rates PulteGroup as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Get the full PulteGroup Ratings Report now.

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If you are interested in one of these 4 stocks, 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).

A reminder about TheStreet Ratings group: 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.
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