Timken Company (TKR): Today's Featured Industrial Goods Laggard

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.

Timken Company ( TKR) pushed the Industrial Goods sector lower today making it today's featured Industrial Goods laggard. The sector as a whole closed the day up 0.2%. By the end of trading, Timken Company fell 68 cents (-1.7%) to $40.07 on average volume. Throughout the day, 1.2 million shares of Timken Company exchanged hands as compared to its average daily volume of 1.6 million shares. The stock ranged in price between $40.06-$41.16 after having opened the day at $40.67 as compared to the previous trading day's close of $40.75. Other companies within the Industrial Goods sector that declined today were: Polypore International ( PPO), down 7.7%, China Advanced Construction Materials Group ( CADC), down 6.5%, Arotech Corporation ( ARTX), down 4.9%, and Erickson Air-Crane ( EAC), down 4.9%.

The Timken Company develops, manufactures, markets, and sells anti-friction bearings and assemblies, alloy steels, and mechanical power transmission systems. It operates through four segments: Mobile Industries, Process Industries, Aerospace and Defense, and Steel. Timken Company has a market cap of $3.99 billion and is part of the industrial industry. The company has a P/E ratio of 7.2, equal to the average industrial industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 5.3% year to date as of the close of trading on Monday. Currently there are six analysts that rate Timken Company a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates Timken Company as a buy. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, impressive record of earnings per share growth, compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins.

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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