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 down 313.0 points (-2.4%) at 12,932. During the day, 881.5 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 582.4 million. The NYSE advances/declines ratio closed at 556 issues advancing vs. 2,484 declining with 81 unchanged.
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Holding the Dow back today was Caterpillar (NYSE: CAT), which lagged the broader Dow index with a $3.06 decline (-3.5%) bringing the stock to $85.02. This single loss lowered the Dow Jones Industrial Average by 23.16 points or roughly accounting for 7.4% of the Dow's overall loss. Volume for Caterpillar ended the day at eight million shares traded vs. an average daily trading volume of 7.3 million shares.
Caterpillar has a market cap of $56.74 billion and is part of the conglomerates sector and conglomerates industry. Shares are down 4.2% year to date as of Tuesday'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 8.9, 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.