Precision Castparts Corp. (PCP): 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.

Precision Castparts ( PCP) pushed the Industrial industry lower today making it today's featured Industrial laggard. The industry as a whole closed the day down 0.5%. By the end of trading, Precision Castparts fell $2.11 (-1.3%) to $161.30 on average volume. Throughout the day, 731,701 shares of Precision Castparts exchanged hands as compared to its average daily volume of 675,700 shares. The stock ranged in price between $159.84-$161.99 after having opened the day at $159.97 as compared to the previous trading day's close of $163.41. Other companies within the Industrial industry that declined today were: China Valves Technology ( CVVT), down 46.3%, UQM Technologies ( UQM), down 12.9%, ZBB Energy Corporation ( ZBB), down 10.7%, and A123 Systems ( AONE), down 8.4%.
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Precision Castparts Corp. manufactures and sells metal components and products worldwide. Precision Castparts has a market cap of $23.43 billion and is part of the industrial goods sector. The company has a P/E ratio of 18.3, below the average industrial industry P/E ratio of 18.4 and above the S&P 500 P/E ratio of 17.7. Shares are down 2.2% year to date as of the close of trading on Friday. Currently there are 11 analysts that rate Precision Castparts a buy, no analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates Precision Castparts as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

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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