Pentair Inc. (PNR): Today's Featured Industrial 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.

Pentair ( PNR) pushed the Industrial industry lower today making it today's featured Industrial laggard. The industry as a whole closed the day up 0.9%. By the end of trading, Pentair fell 51 cents (-1.2%) to $43.38 on heavy volume. Throughout the day, 1.7 million shares of Pentair exchanged hands as compared to its average daily volume of 862,300 shares. The stock ranged in price between $43-$43.90 after having opened the day at $43.81 as compared to the previous trading day's close of $43.89. Other companies within the Industrial industry that declined today were: Skullcandy ( SKUL), down 16.4%, A123 Systems ( AONE), down 8.3%, Edwards Group ( EVAC), down 6.2%, and Continental Materials Corporation ( CUO), down 6.1%.
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Pentair, Inc. operates as a diversified industrial manufacturing company worldwide. Pentair has a market cap of $4.27 billion and is part of the industrial goods sector. The company has a P/E ratio of 87.8, below the average industrial industry P/E ratio of 89.6 and above the S&P 500 P/E ratio of 17.7. Shares are up 29.3% year to date as of the close of trading on Wednesday. Currently there are five analysts that rate Pentair a buy, no analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates Pentair as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, PMFG ( PMFG), up 11.1%, Pall Corporation ( PLL), up 8%, Eastern ( EML), up 6.7%, and Unifi ( UFI), up 6.2%, were all gainers within the industrial industry with Caterpillar ( CAT) being today's featured industrial industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the industrial industry could consider SPDR Dow Jones Industrial Average ( DIA) while those bearish on the industrial industry could consider ProShares UltraShort Industrials ( SIJ).

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