Fluor (NYSE:FLR), Foster Wheeler (Nasdaq:FWLT), McDermott (NYSE:MDR), CB&I (NYSE: CBI) Barclays' Favorite E&C Picks

Saying they prefer "oily" E&C picks for 2011, Barclays (NYSE:BCS) favorites in the sector are Fluor (NYSE:FLR), Foster Wheeler (Nasdaq:FWLT), McDermott (NYSE:MDR) and CB&I (NYSE:CBI).

Barclays said, "We remain bullish regarding the prospects for many of our Engineering and Construction stocks under coverage in 2011, led by continued global economic improvement, higher oil demand/pricing, and accelerated growth in oil & gas awards.

"We still like "oily" E&Cs with significant international exposure (our favorites remain Fluor (NYSE: FLR), Foster Wheeler (Nasdaq: FWLT), McDermott (NYSE: MDR), and CB&I (NYSE: CBI)) when analyzing E&C potential growth and stock price performance in 2011 and introduce target multiples on 2012 earnings that are two turns higher than our previous multiples.

"We maintain our target P/E valuation multiple of E&Cs with significant exposure to domestic power/utilities as we believe meaningful recovery in utility spending is still slated for the late 2011/2012 timeframe, including expected ramp-up in commercial nuclear and emissions control work (Shaw Group (Nasdaq:SHAW), Babcock (NYSE:BWC), MasTec (NYSE:MTZ))."

Fluor closed Friday at $65.92, gaining $0.57, or 0.87 percent. Foster Wheeler closed at $34.88, down $0.32, or 0.91 percent. McDermott closed at $20.04, gaining $0.11, or 0.55 percent. CB&I ended the session at $32.88, up $0.61, or 1.89 percent.