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

.

Eaton

(

ETN

) pushed the Industrial Goods sector higher today making it today's featured industrial goods winner. The sector as a whole closed the day up 1.2%. By the end of trading, Eaton rose $2.10 (4.7%) to $47.22 on heavy volume. Throughout the day, 7.8 million shares of Eaton exchanged hands as compared to its average daily volume of 3.8 million shares. The stock ranged in a price between $44.96-$47.98 after having opened the day at $44.96 as compared to the previous trading day's close of $45.12. Other companies within the Industrial Goods sector that increased today were:

Generac Holdings

(

GNRC

), up 20%,

Clean Harbors

(

CLH

), up 18%,

Lincoln Electric Holdings

(

LECO

), up 11.2%, and

Great Lakes Dredge & Dock Corporation

(

GLDD

), up 11.2%.

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Eaton Corporation operates as a diversified power management company worldwide. Eaton has a market cap of $15.25 billion and is part of the industrial industry. The company has a P/E ratio of 10.8, equal to the average industrial industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 3.7% year to date as of the close of trading on Tuesday. Currently there are 11 analysts that rate Eaton a buy, one analyst rates it a sell, and three rate it a hold.

TheStreet Ratings rates Eaton as a

buy

. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows low profit margins.

On the negative front,

China BAK Battery

(

CBAK

), down 23%,

Altair Nanotechnologies

(

ALTI

), down 14%,

Wowjoint Holdings

(

BWOW

), down 13.3%, and

Real Goods Solar

(

RSOL

), down 10.5%, were all laggards within the industrial goods sector with

Textron

(

TXT

) being today's industrial goods sector laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the industrial goods sector could consider

Industrial Select Sector SPDR

(

XLI

) while those bearish on the industrial goods sector could consider

ProShares Short Dow 30

(

DOG

).

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