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McDermott (MDR) Flat As Market Sinks: What You Should Know

Zacks Equity Research

McDermott (MDR) closed the most recent trading day at $1.80, making no change from the previous trading session. This move was narrower than the S&P 500's daily loss of 1.56%. Meanwhile, the Dow lost 1.19%, and the Nasdaq, a tech-heavy index, lost 1.67%.

Coming into today, shares of the maker of offshore drilling platforms had lost 69.28% in the past month. In that same time, the Oils-Energy sector lost 0.88%, while the S&P 500 lost 1.22%.

Wall Street will be looking for positivity from MDR as it approaches its next earnings report date. In that report, analysts expect MDR to post earnings of -$0.18 per share. This would mark a year-over-year decline of 190%. Meanwhile, our latest consensus estimate is calling for revenue of $2.21 billion, down 3.56% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.33 per share and revenue of $9.49 billion. These totals would mark changes of +66.67% and +41.54%, respectively, from last year.

Any recent changes to analyst estimates for MDR should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. MDR is currently a Zacks Rank #3 (Hold).

The Oil and Gas - Mechanical and and Equipment industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 183, putting it in the bottom 29% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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