Chicago Bridge & Iron Company (CBI): Today's Featured Materials & Construction Winner

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 higher today making it today's featured materials & construction winner. The industry as a whole closed the day up 0.7%. By the end of trading, Chicago Bridge & Iron Company rose $1.08 (2.0%) to $56.30 on average volume. Throughout the day, 1,976,679 shares of Chicago Bridge & Iron Company exchanged hands as compared to its average daily volume of 2,032,900 shares. The stock ranged in a price between $55.25-$56.61 after having opened the day at $55.34 as compared to the previous trading day's close of $55.22. Other companies within the Materials & Construction industry that increased today were: MagneGas Corporation ( MNGA), up 28.5%, Pure Cycle Corporation ( PCYO), up 12.0%, Xinyuan Real Estate ( XIN), up 8.4% and PGT ( PGTI), up 7.0%.
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Chicago Bridge & Iron Company N.V., an energy infrastructure focused company, provides conceptual design, technology, engineering, procurement, fabrication, construction, and commissioning services to customers in the energy, petrochemical, and natural resource industries worldwide. Chicago Bridge & Iron Company has a market cap of $5.8 billion and is part of the industrial goods sector. The company has a P/E ratio of 16.3, below the S&P 500 P/E ratio of 17.7. Shares are up 19.1% year to date as of the close of trading on Friday. Currently there are 9 analysts that rate Chicago Bridge & Iron Company a buy, 1 analyst rates it a sell, and 2 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, largely solid financial position with reasonable debt levels by most measures, notable return on equity and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, Comstock ( CHCI), down 8.9%, Boise Cascade ( BCC), down 4.7%, Integrated Electrical Services ( IESC), down 3.4% and Gafisa ( GFA), down 3.2%.

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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