Eaton Corp (ETN): Today's Featured Industrial Goods Loser

Eaton ( ETN) pushed the Industrial Goods sector lower today making it today's featured Industrial Goods loser. The sector as a whole closed the day down 0.3%. By the end of trading, Eaton fell 31 cents (-0.8%) to $39.19 on light volume. Throughout the day, three million shares of Eaton exchanged hands as compared to its average daily volume of five million shares. The stock ranged in price between $38.95-$39.61 after having opened the day at $39.49 as compared to the previous trading day's close of $39.50. Other company's within the Industrial Goods sector that declined today were: China Development Group Corporation ( CTDC), down 12.1%, A123 Systems ( AONE), down 11.2%, Real Goods Solar ( RSOL), down 10.7%, and NF Energy Saving ( NFEC), down 9.4%.

Eaton Corporation operates as a diversified power management company worldwide. Eaton has a market cap of $13.6 billion and is part of the industrial industry. The company has a P/E ratio of 10, equal to the average industrial industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are down 9.3% year to date as of the close of trading on Friday. Currently there are 12 analysts that rate Eaton a buy, one analyst rates it a sell, and two rate it a hold.

TheStreet Ratings rates Eaton as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, revenue growth, attractive valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the positive front, Manitex International ( MNTX), up 13.4%, P & F Industries ( PFIN), up 8.3%, Valence Technology ( VLNC), up 7.8%, and China Ming Yang Wind Power Group ( MY), up 7.7%, were all gainers within the industrial goods sector with Raytheon Company ( RTN) 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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