Dow Today: Chevron (CVX) Leads The Day Higher, Caterpillar (CAT) Lags

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.

The Dow Jones Industrial Average ( ^DJI) closed up 19 points (+0.1%) at 13,596. During the day, 525.2 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 579.5 million. The NYSE advances/declines ratio closed at 1,170 issues advancing vs. 1,809 declining with 124 unchanged.
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The Dow component that led the way higher today was Chevron (NYSE: CVX), which sported a $1.25 gain (+1.1%) bringing the stock to $117.85. This single gain is lifting the Dow Jones Industrial Average by 9.46 points or roughly accounting for 49.8% of the Dow's overall gain. Volume for Chevron ended the day at 7.1 million shares traded vs. an average daily trading volume of 5.8 million shares.

Chevron has a market cap of $229.51 billion and is part of the basic materials sector and energy industry. Shares are up 9.9% year to date as of Wednesday's close. The stock's dividend yield sits at 3.1%.

Chevron Corporation, through its subsidiaries, engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. It operates in two segments, Upstream and Downstream. The company has a P/E ratio of 8.7, equal to the average energy industry P/E ratio and below the S&P 500 P/E ratio of 17.7.

TheStreet Ratings rates Chevron as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, notable return on equity and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Holding the Dow back today was Caterpillar (NYSE: CAT), which lagged the broader Dow index with a $1.40 decline (-1.5%) bringing the stock to $92.54. Volume for Caterpillar ended the day at 6.7 million shares traded vs. an average daily trading volume of 7.4 million shares.

Caterpillar has a market cap of $60.8 billion and is part of the conglomerates sector and conglomerates industry. Shares are up 2.7% year to date as of Wednesday's close. The stock's dividend yield sits at 2.2%.

Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. The company has a P/E ratio of 10.4, equal to the average conglomerates industry P/E ratio and below the S&P 500 P/E ratio of 17.7.

TheStreet Ratings rates Caterpillar as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, impressive record of earnings per share growth, compelling growth in net income and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

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