4 Materials & Construction Stocks Pushing Industry Growth

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 14 points (0.1%) at 15,368 as of Monday, May 20, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,885 issues advancing vs. 1,048 declining with 118 unchanged.

The Materials & Construction industry currently sits up 2.6% versus the S&P 500, which is up 0.1%. A company within the industry that increased today was Chicago Bridge & Iron Company ( CBI), up 3.69. On the negative front, top decliners within the industry include Empresas ICA S.A.B. de C.V ( ICA), down 6.28, James Hardie Industries ( JHX), down 3.05, Masco Corporation ( MAS), down 2.46, DR Horton ( DHI), down 1.32 and Sherwin-Williams Company ( SHW), down 0.85.

TheStreet Ratings group would like to highlight 4 stocks pushing the industry higher today:

4. Foster Wheeler ( FWLT) is one of the companies pushing the Materials & Construction industry higher today. As of noon trading, Foster Wheeler is up $2.43 (11.25) to $24.03 on heavy volume Thus far, 2.9 million shares of Foster Wheeler exchanged hands as compared to its average daily volume of 1.4 million shares. The stock has ranged in price between $21.60-$24.45 after having opened the day at $21.64 as compared to the previous trading day's close of $21.60.

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 $2.2 billion and is part of the industrial goods sector. The company has a P/E ratio of 21.3, above the S&P 500 P/E ratio of 17.7. Shares are down 11.6% year to date as of the close of trading on Friday. Currently there are 8 analysts that rate Foster Wheeler a buy, no analysts rate it a sell, and 5 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 reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, poor profit margins and feeble growth in the company's earnings per share. Get the full Foster Wheeler Ratings Report now.

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3. As of noon trading, McDermott International ( MDR) is up $0.34 (3.89) to $9.20 on average volume Thus far, 2.8 million shares of McDermott International exchanged hands as compared to its average daily volume of 3.9 million shares. The stock has ranged in price between $8.78-$9.24 after having opened the day at $8.81 as compared to the previous trading day's close of $8.86.

McDermott International, Inc. operates as an engineering, procurement, construction, and installation (EPCI) company worldwide. The company operates in three segments: Asia Pacific, Atlantic, and the Middle East. It focuses on designing and executing complex offshore oil and gas projects. McDermott International has a market cap of $2.0 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 8 analysts that rate McDermott International a buy, 1 analyst rates it a sell, and 5 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 reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and weak operating cash flow. Get the full McDermott International Ratings Report now.

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2. As of noon trading, Republic Services ( RSG) is up $0.19 (0.54) to $35.08 on light volume Thus far, 564,569 shares of Republic Services exchanged hands as compared to its average daily volume of 1.6 million shares. The stock has ranged in price between $34.84-$35.10 after having opened the day at $34.88 as compared to the previous trading day's close of $34.89.

Republic Services, Inc., together with its subsidiaries, provides non-hazardous solid waste collection, transfer, and recycling and disposal services for commercial, industrial, municipal, and residential customers in the United States and Puerto Rico. Republic Services has a market cap of $12.5 billion and is part of the industrial goods sector. The company has a P/E ratio of 22.9, above the S&P 500 P/E ratio of 17.7. Shares are up 19.0% year to date as of the close of trading on Friday. Currently there are 2 analysts that rate Republic Services a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Republic Services as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, reasonable valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Republic Services Ratings Report now.

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1. As of noon trading, Fluor Corporation ( FLR) is up $1.97 (3.05) to $66.54 on heavy volume Thus far, 1.7 million shares of Fluor Corporation exchanged hands as compared to its average daily volume of 2.1 million shares. The stock has ranged in price between $64.17-$66.90 after having opened the day at $64.22 as compared to the previous trading day's close of $64.57.

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 $10.1 billion and is part of the industrial goods sector. The company has a P/E ratio of 22.0, above the S&P 500 P/E ratio of 17.7. Shares are up 9.9% year to date as of the close of trading on Friday. 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 buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Fluor Corporation 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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