Gardner Denver Inc. (GDI): 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.

Gardner Denver ( GDI) pushed the Industrial Goods sector lower today making it today's featured Industrial Goods laggard. The sector as a whole closed the day up 0.7%. By the end of trading, Gardner Denver fell 74 cents (-1.2%) to $60.40 on average volume. Throughout the day, 909,512 shares of Gardner Denver exchanged hands as compared to its average daily volume of 674,600 shares. The stock ranged in price between $60.25-$62.14 after having opened the day at $61.58 as compared to the previous trading day's close of $61.14. Other companies within the Industrial Goods sector that declined today were: 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%.
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Gardner Denver, Inc. designs, manufactures, and markets engineered industrial machinery and related parts and services primarily in North America, Europe, Asia, South America, Africa, and Australia. The company operates in two segments, Industrial Products Group and Engineered Products Group. Gardner Denver has a market cap of $3.06 billion and is part of the industrial industry. The company has a P/E ratio of 11.3, equal to the average industrial industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are down 19% year to date as of the close of trading on Thursday. Currently there are three analysts that rate Gardner Denver a buy, no analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates Gardner Denver as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the positive front, 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%, were all gainers within the industrial goods sector with Mohawk Industries ( MHK) being today's featured industrial goods sector leader.

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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