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 1.3%. By the end of trading, Precision Castparts fell $3.40 (-2.1%) to $161.71 on light volume. Throughout the day, 490,401 shares of Precision Castparts exchanged hands as compared to its average daily volume of 679,100 shares. The stock ranged in price between $161.57-$163.81 after having opened the day at $163.62 as compared to the previous trading day's close of $165.11. Other companies within the Industrial industry that declined today were: A123 Systems ( AONE), down 14.7%, China Valves Technology ( CVVT), down 10.9%, Wowjoint Holdings ( BWOW), down 9.6%, and Twin Disc ( TWIN), down 8.4%.
  • 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.

Precision Castparts Corp. manufactures and sells metal components and products worldwide. Precision Castparts has a market cap of $24.08 billion and is part of the industrial goods sector. The company has a P/E ratio of 18.8, below the average industrial industry P/E ratio of 18.9 and above the S&P 500 P/E ratio of 17.7. Shares are up 0.5% year to date as of the close of trading on Monday. Currently there are 11 analysts that rate Precision Castparts a buy, no analysts rate it a sell, and seven 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.

On the positive front, Highpower International ( HPJ), up 5.2%, THT Heat Transfer Technology ( THTI), up 3.9%, OSI Systems ( OSIS), up 3.6%, and Proto Labs ( PRLB), up 3.5%, were all gainers within the industrial industry with Ametek ( AME) being today's featured industrial industry leader.

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).

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

DOW, TJX, GOOGL: Jim Cramer's Views

Cramer: These Are the Times That Try Our Theses

Cramer: Alcoa Shows Astounding Growth in Europe and China

Common Sense Says Market Will Hold Steady

Common Sense Says Market Will Hold Steady

Alcoa Puts 3 Dissidents on Board, Just Meeting Activist's Deadline