Dow Today: Cisco Systems (CSCO) Leads The Day Higher, Caterpillar (CAT) Lags

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

The Dow Jones Industrial Average (^DJI) is trading up three points at 13,175 as of Wednesday, Aug 15, 2012, 9:35 a.m. ET. During this time, 18.8 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 661.9 million. The NYSE advances/declines ratio sits at 1,341 issues advancing vs. 1,232 declining with 225 unchanged.

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The Dow component leading the way higher looks to be Cisco Systems (Nasdaq:CSCO), which is sporting a 14-cent gain (+0.8%) bringing the stock to $17.30. This single gain is lifting the Dow Jones Industrial Average by 1.06 points or roughly accounting for 35.3% of the Dow's overall gain. Volume for Cisco Systems currently sits at 1.4 million shares traded vs. an average daily trading volume of 41.3 million shares.

Cisco Systems has a market cap of $91.92 billion and is part of the technology sector and computer hardware industry. Shares are down 3% year to date as of Tuesday's close. The stock's dividend yield sits at 1.8%.

Cisco Systems, Inc. designs, manufactures, and sells Internet protocol (IP)-based networking and other products related to the communications and information technology industry worldwide. The company has a P/E ratio of 12.8, above the average computer hardware industry P/E ratio of 12.6 and below the S&P 500 P/E ratio of 17.7.

TheStreet Ratings rates Cisco Systems as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

• You can view the full Cisco Systems Ratings Report.

Holding back the Dow today is Caterpillar (NYSE:CAT), which is lagging the broader Dow index with a $1.15 decline (-1.3%) bringing the stock to $86.72. Volume for Caterpillar currently sits at 655,142 shares traded vs. an average daily trading volume of 7.6 million shares.

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Caterpillar has a market cap of $56.98 billion and is part of the conglomerates sector and conglomerates industry. Shares are down 1.8% year to date as of Tuesday's close. The stock's dividend yield sits at 2.3%.

Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. The company has a P/E ratio of 9.9, above the average conglomerates industry P/E ratio of 9.8 and below the S&P 500 P/E ratio of 17.7.

TheStreet Ratings rates Caterpillar as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company has had generally poor debt management on most measures that we evaluated.

• You can view the full Caterpillar Ratings Report.

 

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