Dow Today: International Business Machines (IBM) Leads The Day Higher, Chevron (CVX) 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 two points at 13,328. During the day, 565.8 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 575.4 million. The NYSE advances/declines ratio closed at 1,068 issues advancing vs. 1,890 declining with 145 unchanged.
  • ACTIVE STOCK TRADERS: Get full access to Jim Cramer's thoughts for less than $3/week - sometimes before he says them on TV! Start with a 14-Day Free Trial.

The Dow component that led the way higher today was International Business Machines (NYSE: IBM), which sported a $2.04 gain (+1%) bringing the stock to $207.80. This single gain is lifting the Dow Jones Industrial Average by 15.44 points or roughly accounting for 772% of the Dow's overall gain. Volume for International Business Machines ended the day at 2.7 million shares traded vs. an average daily trading volume of 3.6 million shares.

International Business Machines has a market cap of $235.21 billion and is part of the technology sector and computer hardware industry. Shares are up 11.9% year to date as of Thursday's close. The stock's dividend yield sits at 1.7%.

International Business Machines Corporation provides information technology (IT) products and services worldwide. The company operates in five segments: Global Technology Services, Global Business Services, Software, Systems and Technology, and Global Financing. The company has a P/E ratio of 15, equal to the average computer hardware industry P/E ratio and below the S&P 500 P/E ratio of 17.7.

TheStreet Ratings rates International Business Machines as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, notable return on equity, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Holding the Dow back today was Chevron (NYSE: CVX), which lagged the broader Dow index with a 95-cent decline (-0.8%) bringing the stock to $112.11. Volume for Chevron ended the day at 5.3 million shares traded vs. an average daily trading volume of 5.9 million shares.

Chevron has a market cap of $220.64 billion and is part of the basic materials sector and energy industry. Shares are up 6.3% year to date as of Thursday's close. The stock's dividend yield sits at 3.2%.

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 8.4, 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 has had sub par growth in net income.

FREE from Real Money's Jim Cramer: Winners and Losers Election 2012 - Steps to take NOW so you can profit no matter who is in charge! Free download now.
null

If you liked this article you might like

CEOs Are Dropping Like Flies

Total Reaches Agreement With Chevron for Gulf of Mexico Exploration

Stocks In Negative Territory as Chances for December Hike Surge

Energy Stocks Lead a Neutral Market Even After Oil Inventories Spike

Energy Takes a Backseat as Crude Oil Stabilizes Under $50