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 1.5%. By the end of trading, Cummins rose $2.06 (2%) to $102.82 on light volume. Throughout the day, 2.2 million shares of Cummins exchanged hands as compared to its average daily volume of three million shares. The stock ranged in a price between $100.35-$103.72 after having opened the day at $100.52 as compared to the previous trading day's close of $100.76. Other companies within the Industrial Goods sector that increased today were: Real Goods Solar ( RSOL), up 10.2%, Arotech Corporation ( ARTX), up 9.3%, Guanwei Recycling ( GPRC), up 9.2%, and Broadwind Energy ( BWEN), up 9.1%.

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 $19.23 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 up 14.4% year to date as of the close of trading on Wednesday. Currently there are five analysts that rate Cummins a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Cummins as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity and attractive valuation levels. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

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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