Mohawk Industries Inc. (MHK): 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.

Mohawk Industries ( MHK) pushed the Industrial Goods sector higher today making it today's featured industrial goods winner. The sector as a whole closed the day up 0.7%. By the end of trading, Mohawk Industries rose $3 (3.8%) to $82.59 on heavy volume. Throughout the day, 1.4 million shares of Mohawk Industries exchanged hands as compared to its average daily volume of 465,300 shares. The stock ranged in a price between $79.85-$82.68 after having opened the day at $79.96 as compared to the previous trading day's close of $79.59. Other companies within the Industrial Goods sector that increased today were: Ecotality ( ECTY), up 17.8%, Real Goods Solar ( RSOL), up 17.4%, KB Home ( KBH), up 16.4%, and A123 Systems ( AONE), up 12.6%.
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Mohawk Industries, Inc., together with its subsidiaries, engages in the production and sale of floor covering products for residential and commercial markets for remodeling and new construction primarily in the United States and Europe. Mohawk Industries has a market cap of $5.44 billion and is part of the industrial industry. The company has a P/E ratio of 26.8, equal to the average industrial industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are up 33% year to date as of the close of trading on Thursday. Currently there are four analysts that rate Mohawk Industries a buy, one analyst rates it a sell, and five rate it a hold.

TheStreet Ratings rates Mohawk Industries as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, reasonable valuation levels, good cash flow from operations, growth in earnings per share 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.

On the negative front, Hallwood Group ( HWG), down 16.3%, MagneGas Corporation ( MNGA), down 15.7%, Integrated Electrical Services ( IESC), down 12.6%, and CPI Aerostructures ( CVU), down 6.7%, were all laggards within the industrial goods sector with Gardner Denver ( GDI) being today's industrial goods sector laggard.

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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