Precision Castparts Corp. (PCP): 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.

Precision Castparts ( PCP) pushed the Industrial Goods sector higher today making it today's featured industrial goods winner. The sector as a whole closed the day up 0.3%. By the end of trading, Precision Castparts rose $3.19 (2%) to $164.85 on average volume. Throughout the day, 611,659 shares of Precision Castparts exchanged hands as compared to its average daily volume of 739,000 shares. The stock ranged in a price between $161.42-$165 after having opened the day at $161.50 as compared to the previous trading day's close of $161.66. Other companies within the Industrial Goods sector that increased today were: Cleantech Solutions International ( CLNT), up 15.6%, India Globalization Capital ( IGC), up 13.7%, THT Heat Transfer Technology ( THTI), up 12.3%, and Nobility Homes ( NOBH), up 8.4%.

Precision Castparts Corp. manufactures and sells metal components and products worldwide. Precision Castparts has a market cap of $23.17 billion and is part of the industrial industry. The company has a P/E ratio of 18.5, above the average industrial industry P/E ratio of 18.2 and above the S&P 500 P/E ratio of 17.7. Shares are down 0.8% year to date as of the close of trading on Thursday. Currently there are 12 analysts that rate Precision Castparts a buy, no analysts rate it a sell, and six rate it a hold.

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

On the negative front, China BAK Battery ( CBAK), down 12.4%, Bonso Electronics International ( BNSO), down 8.6%, ZBB Energy Corporation ( ZBB), down 8.4%, and Avalon Holdings ( AWX), down 7.9%, were all laggards within the industrial goods sector with Manitowoc ( MTW) 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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