Cummins Inc (CMI): Today's Featured Industrial Goods Winner

Cummins ( CMI) pushed the Industrial Goods sector higher today making it today's featured industrial goods winner. The sector as a whole closed the day up 1.1%. By the end of trading, Cummins rose 98 cents (0.8%) to $116.08 on light volume. Throughout the day, 1.5 million shares of Cummins exchanged hands as compared to its average daily volume of 2.4 million shares. The stock ranged in a price between $113.81-$116.36 after having opened the day at $114.69 as compared to the previous trading day's close of $115.10. Other companies within the Industrial Goods sector that increased today were: Aerosonic Corporation ( AIM), up 32.8%, Patrick Industries ( PATK), up 28%, NF Energy Saving ( NFEC), up 20.7%, and Nobility Homes ( NOBH), up 17.3%.

Cummins Inc. designs, manufactures, distributes, and services diesel and natural gas engines, and engine-related component products worldwide. It operates in four segments: Engine, Components, Power Generation, and Distribution. Cummins has a market cap of $22.3 billion and is part of the industrial industry. The company has a P/E ratio of 12.2, equal to the average industrial industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 31.8% year to date as of the close of trading on Wednesday. Currently there are eight analysts that rate Cummins a buy, no analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates Cummins as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, robust revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins.

On the negative front, Cleantech Solutions International ( CLNT), down 14.8%, LSB Industries ( LXU), down 9.5%, Kennametal ( KMT), down 7.8%, and Graco Incorporated ( GGG), down 7.1%, were all losers within the industrial goods sector with Ingersoll-Rand ( IR) being today's industrial goods sector loser.

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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