5 Stocks Pushing The Industrial Goods Sector Lower

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

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 27 points (-0.2%) at 12,904 as of Thursday, Nov. 8, 2012, 11:49 AM ET. The NYSE advances/declines ratio sits at 1,218 issues advancing vs. 1,656 declining with 135 unchanged.

The Industrial Goods sector currently sits down 0.6% versus the S&P 500, which is down 0.2%. On the negative front, top decliners within the sector include PulteGroup ( PHM), down 2.6%, DR Horton ( DHI), down 2.4%, General Dynamics ( GD), down 2.4%, Lennar Corporation ( LEN), down 1.7% and Fluor Corporation ( FLR), down 1.7%. A company within the sector that increased today was Nidec Corporation ( NJ), up 1.1%.

TheStreet Ratings group would like to highlight 5 stocks pushing the sector lower today:

5. McDermott International ( MDR) is one of the companies pushing the Industrial Goods sector lower today. As of noon trading, McDermott International is down $0.59 (-5.6%) to $10.03 on heavy volume Thus far, 2.3 million shares of McDermott International exchanged hands as compared to its average daily volume of 3.0 million shares. The stock has ranged in price between $9.90-$10.61 after having opened the day at $10.57 as compared to the previous trading day's close of $10.62.

McDermott International, Inc. operates as an engineering, procurement, construction, and installation (EPCI) company worldwide. It focuses on designing and executing complex offshore oil and gas projects. McDermott International has a market cap of $2.6 billion and is part of the materials & construction industry. The company has a P/E ratio of 16.6, below the S&P 500 P/E ratio of 17.7. Shares are up 17.8% year to date as of the close of trading on Wednesday. Currently there are 13 analysts that rate McDermott International a buy, 1 analyst rates it a sell, and 1 rates it a hold.

TheStreet Ratings rates McDermott International as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins. Get the full McDermott International Ratings Report now.

4. As of noon trading, Masco Corporation ( MAS) is down $0.49 (-3.0%) to $15.80 on light volume Thus far, 1.2 million shares of Masco Corporation exchanged hands as compared to its average daily volume of 5.5 million shares. The stock has ranged in price between $15.75-$16.32 after having opened the day at $16.28 as compared to the previous trading day's close of $16.29.

Masco Corporation manufactures, distributes, and installs home improvement and building products primarily in North America and Europe. Masco Corporation has a market cap of $5.8 billion and is part of the materials & construction industry. The company has a P/E ratio of -11.5, below the S&P 500 P/E ratio of 17.7. Shares are up 55.9% year to date as of the close of trading on Wednesday. Currently there are 2 analysts that rate Masco Corporation a buy, 2 analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates Masco Corporation as a hold. Among the primary strengths of the company is its solid stock price performance. At the same time, however, we also find weaknesses including unimpressive growth in net income, disappointing return on equity and weak operating cash flow. Get the full Masco Corporation Ratings Report now.

3. As of noon trading, Illinois Tool Works ( ITW) is down $0.71 (-1.1%) to $61.03 on light volume Thus far, 993,191 shares of Illinois Tool Works exchanged hands as compared to its average daily volume of 2.9 million shares. The stock has ranged in price between $60.65-$61.48 after having opened the day at $60.92 as compared to the previous trading day's close of $61.74.

Illinois Tool Works Inc. manufactures various industrial products and equipment worldwide. Illinois Tool Works has a market cap of $29.2 billion and is part of the industrial industry. The company has a P/E ratio of 15.3, below the S&P 500 P/E ratio of 17.7. Shares are up 32.2% year to date as of the close of trading on Wednesday. Currently there are 9 analysts that rate Illinois Tool Works a buy, 1 analyst rates it a sell, and 7 rate it a hold.

TheStreet Ratings rates Illinois Tool Works as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Illinois Tool Works Ratings Report now.

2. As of noon trading, Honeywell International ( HON) is down $0.29 (-0.5%) to $61.83 on light volume Thus far, 923,578 shares of Honeywell International exchanged hands as compared to its average daily volume of 3.3 million shares. The stock has ranged in price between $61.61-$62.49 after having opened the day at $62.00 as compared to the previous trading day's close of $62.12.

Honeywell International Inc. operates as a diversified technology and manufacturing company worldwide. Honeywell International has a market cap of $49.8 billion and is part of the aerospace/defense industry. The company has a P/E ratio of 21.2, above the S&P 500 P/E ratio of 17.7. Shares are up 16.9% year to date as of the close of trading on Wednesday. Currently there are 16 analysts that rate Honeywell International a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Honeywell International as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Honeywell International Ratings Report now.

1. As of noon trading, Caterpillar ( CAT) is down $0.96 (-1.1%) to $84.06 on light volume Thus far, 2.5 million shares of Caterpillar exchanged hands as compared to its average daily volume of 7.3 million shares. The stock has ranged in price between $83.76-$85.24 after having opened the day at $85.02 as compared to the previous trading day's close of $85.02.

Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. Caterpillar has a market cap of $57.6 billion and is part of the conglomerates industry. The company has a P/E ratio of 9.0, below the S&P 500 P/E ratio of 17.7. Shares are down 2.8% year to date as of the close of trading on Wednesday. Currently there are 10 analysts that rate Caterpillar a buy, no analysts rate it a sell, and 11 rate it a hold.

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. Get the full Caterpillar Ratings Report now.

If you are interested in one of these 4 stocks, ETFs may be of interest. Investors who are bullish on the industrial goods sector could consider Industrial Select Sector SPDR ( XLI) while those bearish on the industrial goods sector could consider ProShares Short Dow 30 ( DOG).

A reminder about TheStreet Ratings group: 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.

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