Cooper Industries PLC. (CBE): Today's Featured Conglomerates 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.

Cooper Industries ( CBE) pushed the Conglomerates sector higher today making it today's featured conglomerates winner. The sector as a whole closed the day down 1.2%. By the end of trading, Cooper Industries rose $1.72 (2.4%) to $74.94 on heavy volume. Throughout the day, four million shares of Cooper Industries exchanged hands as compared to its average daily volume of 1.3 million shares. The stock ranged in a price between $73.23-$75.67 after having opened the day at $73.33 as compared to the previous trading day's close of $73.22.
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Cooper Industries plc manufactures and sells electrical components and tools in the United States and internationally. It operates in two segments, Energy and Safety Solutions, and Electrical Products Group. Cooper Industries has a market cap of $11.86 billion and is part of the electronics industry. The company has a P/E ratio of 17, equal to the average electronics industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 35.6% year to date as of the close of trading on Tuesday. Currently there is one analyst that rates Cooper Industries a buy, no analysts rate it a sell, and 11 rate it a hold.

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

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the conglomerates sector could consider SPDR Trust Series one ( SPY) while those bearish on the conglomerates sector could consider ProShares Short S&P 500 ( SH).

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