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 down 0.1%. By the end of trading, Timken Company fell 77 cents (-1.9%) to $40.68 on light volume. Throughout the day, 560,658 shares of Timken Company exchanged hands as compared to its average daily volume of 1.6 million shares. The stock ranged in price between $40.59-$41.66 after having opened the day at $41.39 as compared to the previous trading day's close of $41.45. Other companies within the Industrial Goods sector that declined today were: India Globalization Capital ( IGC), down 17.6%, THT Heat Transfer Technology ( THTI), down 14%, IntriCon Corporation ( IIN), down 7.5%, and Gafisa ( GFA), down 6.1%.

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 $3.93 billion and is part of the industrial industry. The company has a P/E ratio of 7.1, equal to the average industrial industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 7.1% year to date as of the close of trading on Friday. 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 impressive record of earnings per share growth, compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. 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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