Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, engineering and construction company has earned a coveted five-star ranking.

With that in mind, let's take a closer look at McDermott and see what CAPS investors are saying about the stock right now.

McDermott facts

Headquarters (Founded)

Houston (1923)

Market Cap

$2.1 billion

Industry

Oil and gas equipment and services

Trailing-12-Month Revenue

$3.7 billion

Management

Chairman/CEO Stephen Johnson

CFO Perry Elders

11.3%

Cash/Debt

$461.5 million / $101.2 million

Competitors


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 98% of the 1,325 members who have rated McDermott believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, All-Star timclaason, succinctly summed up the McDermott bull case for our community:

MDR has fallen significantly from over $13 per share a few months ago, to under $9 today. This drop is due to missed earnings.

This stock has all the marks of a stock "on sale." P/E ratio, price-to-book, and debt levels are lower than many of their competitors. Current ratio is in-line with competitors, return on average assets is higher than competitors.

It may take a while for price to recover, but with current price near 52 week low, and a recent support-level check, I think it's a good entry point.   

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a perfect five-star rating, McDermott may not be your top choice.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

The article Why McDermott Is Poised to Bounce Back originally appeared on Fool.com.

Motley Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.


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