McDermott International Inc (MDR): 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

McDermott International ( MDR) pushed the Materials & Construction industry higher today making it today's featured materials & construction winner. The industry as a whole closed the day down 1.3%. By the end of trading, McDermott International rose $0.22 (2.4%) to $9.55 on heavy volume. Throughout the day, 6,568,470 shares of McDermott International exchanged hands as compared to its average daily volume of 3,788,900 shares. The stock ranged in a price between $9.26-$9.60 after having opened the day at $9.29 as compared to the previous trading day's close of $9.33. Other companies within the Materials & Construction industry that increased today were: Goldfield ( GV), up 4.0%, Perma-Fix Environmental Services ( PESI), up 3.8%, Homex Development ( HXM), up 2.8% and Ecology and Environment ( EEI), up 2.5%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

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 $2.2 billion and is part of the basic materials 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 Thursday. 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.

On the negative front, MagneGas Corporation ( MNGA), down 22.8%, Real Goods Solar ( RSOL), down 11.5%, Gafisa ( GFA), down 8.8% and Empresas ICA S.A.B. de C.V ( ICA), down 7.6% , were all laggards within the materials & construction industry with DR Horton ( DHI) being today's materials & construction industry laggard.

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).

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
null

If you liked this article you might like

Crude Oil and 4 Oil Services Stocks Are Leaking Post-Election Gains

Bullish and Bearish Reversals in the Market

Crude Oil, 5 Oil Services Stocks Now Springing Leaks

Health Care and Pharma Feeling the Wrath of Trump: Cramer's 'Mad Money' Recap (Wednesday 1/11/17)

Berkshire Hathaway, SAP, Dominion Resources: 'Mad Money' Lightning Round