5 Materials & Construction Stocks Nudging The Industry Higher

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 79 points (-0.5%) at 15,419 as of Friday, Aug. 9, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,348 issues advancing vs. 1,561 declining with 117 unchanged.

The Materials & Construction industry currently sits down 0.1% versus the S&P 500, which is down 0.2%. Top gainers within the industry include Foster Wheeler ( FWLT), up 3.9%, and Weyerhaeuser ( WY), up 0.8%. On the negative front, top decliners within the industry include Tutor Perini ( TPC), down 5.1%, Darling International ( DAR), down 2.1%, PulteGroup ( PHM), down 0.7%, DR Horton ( DHI), down 0.7% and Cemex S.A.B. de C.V ( CX), down 0.6%.

TheStreet would like to highlight 5 stocks pushing the industry higher today:

5. McDermott International ( MDR) is one of the companies pushing the Materials & Construction industry higher today. As of noon trading, McDermott International is up $0.30 (4.4%) to $7.18 on heavy volume. Thus far, 4.1 million shares of McDermott International exchanged hands as compared to its average daily volume of 4.2 million shares. The stock has ranged in price between $7.11-$7.25 after having opened the day at $7.14 as compared to the previous trading day's close of $6.88.

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 $1.6 billion and is part of the basic materials sector. Shares are up 17.8% year to date as of the close of trading on Thursday. Currently there are 5 analysts that rate McDermott International a buy, 1 analyst rates it a sell, and 8 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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4. As of noon trading, Rayonier ( RYN) is up $0.64 (1.1%) to $58.26 on light volume. Thus far, 118,830 shares of Rayonier exchanged hands as compared to its average daily volume of 656,600 shares. The stock has ranged in price between $57.48-$58.31 after having opened the day at $57.56 as compared to the previous trading day's close of $57.62.

Rayonier, Inc. engages in the sale and development of real estate and timberland management, as well as in the production and sale of cellulose fibers in the United States, New Zealand, and Australia. Rayonier has a market cap of $7.3 billion and is part of the financial sector. Shares are up 11.5% year to date as of the close of trading on Thursday. Currently there are 3 analysts that rate Rayonier a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Rayonier as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, solid stock price performance, good cash flow from operations and impressive record of earnings per share growth. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook. Get the full Rayonier Ratings Report now.

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

3. As of noon trading, Plum Creek Timber ( PCL) is up $0.62 (1.3%) to $47.78 on light volume. Thus far, 301,211 shares of Plum Creek Timber exchanged hands as compared to its average daily volume of 886,300 shares. The stock has ranged in price between $47.03-$47.81 after having opened the day at $47.16 as compared to the previous trading day's close of $47.16.

Plum Creek Timber Company, Inc. is a publicly owned real estate investment trust (REIT). The trust owns and manages timberlands in the United States. Its products include lumber products, plywood, medium density fiberboard, and related by-products, such as wood chips. Plum Creek Timber has a market cap of $7.7 billion and is part of the financial sector. Shares are up 6.3% year to date as of the close of trading on Thursday. Currently there are 2 analysts that rate Plum Creek Timber a buy, 1 analyst rates it a sell, and 5 rate it a hold.

TheStreet Ratings rates Plum Creek Timber as a buy. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, impressive record of earnings per share growth, revenue growth, notable return on equity and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Plum Creek Timber Ratings Report now.

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

2. As of noon trading, Quanta Services ( PWR) is up $0.36 (1.3%) to $27.71 on average volume. Thus far, 783,220 shares of Quanta Services exchanged hands as compared to its average daily volume of 1.9 million shares. The stock has ranged in price between $27.32-$27.72 after having opened the day at $27.37 as compared to the previous trading day's close of $27.35.

Quanta Services, Inc. provides specialty contracting services and infrastructure solutions in North America and internationally. It operates in three segments: Electric Power Infrastructure Services; Natural Gas and Pipeline Infrastructure Services; and Fiber Optic Licensing and Other. Quanta Services has a market cap of $5.7 billion and is part of the industrial goods sector. Shares are down 0.6% year to date as of the close of trading on Thursday. Currently there are 13 analysts that rate Quanta Services a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Quanta Services as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, revenue growth, largely solid financial position with reasonable debt levels by most measures and increase in net income. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Quanta Services Ratings Report now.

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

1. As of noon trading, Fastenal Company ( FAST) is up $0.30 (0.6%) to $47.82 on light volume. Thus far, 412,076 shares of Fastenal Company exchanged hands as compared to its average daily volume of 1.8 million shares. The stock has ranged in price between $47.25-$47.83 after having opened the day at $47.56 as compared to the previous trading day's close of $47.52.

Fastenal Company, together with its subsidiaries, operates as a wholesaler and retailer of industrial and construction supplies in the United States, Canada, and internationally. The company offers fasteners and other industrial and construction supplies under the Fastenal name. Fastenal Company has a market cap of $14.2 billion and is part of the industrial goods sector. Shares are up 2.4% year to date as of the close of trading on Thursday. Currently there are 3 analysts that rate Fastenal Company a buy, 1 analyst rates it a sell, and 7 rate it a hold.

TheStreet Ratings rates Fastenal Company as a buy. 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, notable return on equity, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value. Get the full Fastenal Company Ratings Report now.

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

If you are interested in one of these 5 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).
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