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 2.2%. By the end of trading, Fluor Corporation fell $0.83 (-1.5%) to $56.15 on average volume. Throughout the day, 2,615,642 shares of Fluor Corporation exchanged hands as compared to its average daily volume of 1,943,300 shares. The stock ranged in price between $55.63-$56.77 after having opened the day at $56.50 as compared to the previous trading day's close of $56.98. Other companies within the Materials & Construction industry that declined today were: TRC Companies ( TRR), down 9.4%, Comfort Systems USA ( FIX), down 8.8%, Avalon Holdings ( AWX), down 8.8% and Casella Waste Systems ( CWST), down 8.3%.
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Fluor Corporation, through its subsidiaries, provides engineering, procurement, construction, maintenance, and project management services worldwide. The company operates in five segments: Oil & Gas, Industrial & Infrastructure, Government, Global Services, and Power. Fluor Corporation has a market cap of $9.2 billion and is part of the industrial goods sector. The company has a P/E ratio of 20.8, above the S&P 500 P/E ratio of 17.7. Shares are down 3.0% year to date as of the close of trading on Tuesday. Currently there are 14 analysts that rate Fluor Corporation a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Fluor Corporation 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 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 weak operating cash flow.

On the positive front, Beazer Homes USA ( BZH), down 3.9%, Ecology and Environment ( EEI), down 3.8%, Masco Corporation ( MAS), down 3.5% and Progressive Waste Solutions ( BIN), down 2.4%.

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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