McDermott International Inc (MDR): Today's Featured Materials & Construction Laggard

McDermott International ( MDR) pushed the Materials & Construction industry lower today making it today's featured Materials & Construction laggard. The industry as a whole closed the day up 1.6%. By the end of trading, McDermott International fell $0.19 (-2.2%) to $8.40 on average volume. Throughout the day, 4,149,850 shares of McDermott International exchanged hands as compared to its average daily volume of 3,818,400 shares. The stock ranged in price between $8.38-$8.69 after having opened the day at $8.63 as compared to the previous trading day's close of $8.59. Other companies within the Materials & Construction industry that declined today were: Jewett-Cameron Trading Company ( JCTCF), down 10.7%, China Advanced Construction Materials Group ( CADC), down 6.2%, Comstock ( CHCI), down 5.1% and Tri-Tech ( TRIT), down 4.6%.

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 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 Wednesday. 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 positive front, Homex Development ( HXM), up 11.6%, China Recycling Energy Corporation ( CREG), up 7.9%, Skyline Corporation ( SKY), up 7.8% and United States Lime & Minerals ( USLM), up 7.3% , were all gainers within the materials & construction industry with PulteGroup ( PHM) 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).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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