Foster Wheeler AG (FWLT): Today's Featured Materials & Construction Underperformer

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.

Foster Wheeler ( FWLT) pushed the Materials & Construction industry lower today making it today's featured Materials & Construction laggard. The industry as a whole was unchanged today. By the end of trading, Foster Wheeler fell 26 cents (-1.2%) to $21.81 on average volume. Throughout the day, 1.3 million shares of Foster Wheeler exchanged hands as compared to its average daily volume of 1.3 million shares. The stock ranged in price between $21.72-$22.11 after having opened the day at $22.11 as compared to the previous trading day's close of $22.07. Other companies within the Materials & Construction industry that declined today were: Apogee ( APOG), down 11.1%, China Recycling Energy Corporation ( CREG), down 10.5%, Argan ( AGX), down 8.2%, and Real Goods Solar ( RSOL), down 5.8%.
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Foster Wheeler AG, through its subsidiaries, operates in engineering and construction, as well as power generating equipment businesses worldwide. Foster Wheeler has a market cap of $2.31 billion and is part of the industrial goods sector. The company has a P/E ratio of 17.4, below the S&P 500 P/E ratio of 17.7. Shares are down 8.9% year to date as of the close of trading on Wednesday. Currently there are six analysts that rate Foster Wheeler a buy, no analysts rate it a sell, and five rate it a hold.

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

On the positive front, Tri-Tech ( TRIT), up 8.9%, Pure Cycle Corporation ( PCYO), up 6.3%, MagneGas Corporation ( MNGA), up 5.6%, and Industrial Services of America ( IDSA), up 4.5%, 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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