Ingersoll-Rand PLC (IR): 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.

Ingersoll-Rand ( IR) pushed the Industrial Goods sector higher today making it today's featured industrial goods winner. The sector as a whole closed the day up 0.8%. By the end of trading, Ingersoll-Rand rose 68 cents (1.5%) to $46.76 on light volume. Throughout the day, 1.8 million shares of Ingersoll-Rand exchanged hands as compared to its average daily volume of 2.9 million shares. The stock ranged in a price between $45.93-$46.90 after having opened the day at $46.53 as compared to the previous trading day's close of $46.08. Other companies within the Industrial Goods sector that increased today were: MagneGas Corporation ( MNGA), up 18.6%, MagneGas Corporation ( MNGAD), up 18.6%, Esterline Technologies ( ESL), up 13%, and A.M. Castle ( CAS), up 9.3%.

Ingersoll-Rand Public Limited Company engages in the design, manufacture, sale, and service of a diverse portfolio of industrial and commercial products in the United States and internationally. Ingersoll-Rand has a market cap of $14.28 billion and is part of the industrial industry. The company has a P/E ratio of 18.7, below the average industrial industry P/E ratio of 19 and above the S&P 500 P/E ratio of 17.7. Shares are up 52% year to date as of the close of trading on Thursday. Currently there are nine analysts that rate Ingersoll-Rand a buy, one analyst rates it a sell, and seven rate it a hold.

TheStreet Ratings rates Ingersoll-Rand as a buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, solid stock price performance, impressive record of earnings per share growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

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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