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

Cummins ( CMI) pushed the Industrial Goods sector lower today making it today's featured Industrial Goods loser. The sector as a whole closed the day down 1.4%. By the end of trading, Cummins fell $2.05 (-1.8%) to $110.44 on average volume. Throughout the day, 2.7 million shares of Cummins exchanged hands as compared to its average daily volume of 2.3 million shares. The stock ranged in price between $109.75-$112.34 after having opened the day at $111.85 as compared to the previous trading day's close of $112.49. Other company's within the Industrial Goods sector that declined today were: Proto Labs ( PRLB), down 22.1%, Skullcandy ( SKUL), down 13.8%, Albany International Corporation ( AIN), down 13.1%, and Wowjoint Holdings ( BWOW), down 12.5%.

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 $21.36 billion and is part of the industrial industry. The company has a P/E ratio of 11.6, equal to the average industrial industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 26.3% 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 impressive record of earnings per share growth, compelling growth in net income, robust revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, Tower International ( TOWR), up 14.2%, China Recycling Energy Corporation ( CREG), up 8.4%, Circor International ( CIR), up 8.4%, and Gafisa ( GFA), up 7.8%, were all gainers within the industrial goods sector with Alliant Techsystems ( ATK) being today's featured industrial goods sector winner.

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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