Dow Today: Caterpillar (CAT) Leads The Day Higher, Procter & Gamble (PG) 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 19 points (+0.1%) at 13,112. During the day, 451.2 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 571.9 million. The NYSE advances/declines ratio closed at 1,532 issues advancing vs. 1,440 declining with 137 unchanged.
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The Dow component that led the way higher today was Caterpillar (NYSE: CAT), which sported a 98-cent gain (+1.1%) bringing the stock to $86.77. This single gain lifted the Dow Jones Industrial Average by 7.42 points or roughly accounting for 39.1% of the Dow's overall gain. Volume for Caterpillar ended the day at four million shares traded vs. an average daily trading volume of 7.2 million shares.

Caterpillar has a market cap of $57.26 billion and is part of the conglomerates sector and conglomerates industry. Shares are down 3.3% year to date as of Friday's close. The stock's dividend yield sits at 2.4%.

Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. The company has a P/E ratio of nine, below the S&P 500 P/E ratio of 17.7.

TheStreet Ratings rates Caterpillar as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, impressive record of earnings per share growth and compelling growth in net income. 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 Procter & Gamble (NYSE: PG), which lagged the broader Dow index with a 52-cent decline (-0.8%) bringing the stock to $68.67. Volume for Procter & Gamble ended the day at 6.5 million shares traded vs. an average daily trading volume of 9.3 million shares.

Procter & Gamble has a market cap of $189.35 billion and is part of the consumer goods sector and consumer non-durables industry. Shares are up 3.8% year to date as of Friday's close. The stock's dividend yield sits at 3.2%.

The Procter & Gamble Company, together with its subsidiaries, engages in the manufacture and sale of a range of branded consumer packaged goods. The company operates in five segments: Beauty, Grooming, Health Care, Fabric Care and Home Care, and Baby Care and Family Care. The company has a P/E ratio of 22.6, above the S&P 500 P/E ratio of 17.7.

TheStreet Ratings rates Procter & Gamble as a buy. The company's strengths can be seen in multiple areas, such as its expanding profit margins, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

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