Shaw Group Inc (SHAW): Today's Featured Industrial Goods Winner

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.

Shaw Group ( SHAW) pushed the Industrial Goods sector higher today making it today's featured industrial goods winner. The sector as a whole closed the day up 0.2%. By the end of trading, Shaw Group rose 68 cents (1.7%) to $41.21 on average volume. Throughout the day, two million shares of Shaw Group exchanged hands as compared to its average daily volume of 1.9 million shares. The stock ranged in a price between $40.48-$41.33 after having opened the day at $40.55 as compared to the previous trading day's close of $40.53. Other companies within the Industrial Goods sector that increased today were: Integrated Electrical Services ( IESC), up 13.2%, UQM Technologies ( UQM), up 10%, CECO Environmental ( CECE), up 8.4%, and Energy Solutions ( ES), up 7.8%.

The Shaw Group Inc. Shaw Group has a market cap of $2.68 billion and is part of the materials & construction industry. The company has a P/E ratio of 504.2, below the average materials & construction industry P/E ratio of 677.7 and above the S&P 500 P/E ratio of 17.7. Shares are up 50% year to date as of the close of trading on Tuesday. Currently there are no analysts that rate Shaw Group a buy, one analyst rates it a sell, and 10 rate it a hold.

TheStreet Ratings rates Shaw Group as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income and revenue growth. However, as a counter to these strengths, we also find weaknesses including generally poor debt management, weak operating cash flow and poor profit margins.

On the negative front, Guanwei Recycling ( GPRC), down 24.1%, Ecotality ( ECTY), down 21.9%, Cleantech Solutions International ( CLNT), down 14.8%, and Smith & Wesson Holding Corporation ( SWHC), down 11.9%, were all laggards within the industrial goods sector with Allegheny Technologies ( ATI) 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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