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McDermott (MDR) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

McDermott (MDR) closed the most recent trading day at $1.66, moving +1.84% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.97%. At the same time, the Dow added 1.11%, and the tech-heavy Nasdaq gained 1.13%.

Coming into today, shares of the maker of offshore drilling platforms had lost 4.12% in the past month. In that same time, the Oils-Energy sector lost 1.29%, while the S&P 500 gained 2.16%.

Investors will be hoping for strength from MDR as it approaches its next earnings release. In that report, analysts expect MDR to post earnings of -$0.21 per share. This would mark a year-over-year decline of 205%. Our most recent consensus estimate is calling for quarterly revenue of $2.37 billion, up 3.41% from the year-ago period.

MDR's full-year Zacks Consensus Estimates are calling for earnings of -$0.33 per share and revenue of $9.46 billion. These results would represent year-over-year changes of +66.67% and +41.11%, respectively.

Investors should also note any recent changes to analyst estimates for MDR. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 1.54% lower. MDR currently has a Zacks Rank of #3 (Hold).

The Oil and Gas - Mechanical and and Equipment industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 158, which puts it in the bottom 39% 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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