Timken Company (TKR): Today's Featured Industrial 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.

Timken Company ( TKR) pushed the Industrial industry higher today making it today's featured industrial winner. The industry as a whole closed the day down 0.1%. By the end of trading, Timken Company rose 62 cents (1.5%) to $41.41 on average volume. Throughout the day, 1.5 million shares of Timken Company exchanged hands as compared to its average daily volume of 1.1 million shares. The stock ranged in a price between $40.27-$41.74 after having opened the day at $40.58 as compared to the previous trading day's close of $40.79. Other companies within the Industrial industry that increased today were: Broadwind Energy ( BWEN), up 13%, Clean Diesel Technologies ( CDTI), up 13%, CVD Equipment Corporation ( CVV), up 7.9%, and Advanced Emissions Solutions ( ADES), up 7.4%.
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The Timken Company develops, manufactures, markets, and sells anti-friction bearings and assemblies, alloy steels, and mechanical power transmission systems. It operates through four segments: Mobile Industries, Process Industries, Aerospace and Defense, and Steel. Timken Company has a market cap of $3.91 billion and is part of the industrial goods sector. The company has a P/E ratio of 7.6, below the S&P 500 P/E ratio of 17.7. Shares are up 5.3% year to date as of the close of trading on Monday. Currently there are seven analysts that rate Timken Company a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates Timken Company as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity, attractive valuation levels, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, China BAK Battery ( CBAK), down 10.2%, Plug Power ( PLUG), down 8.5%, Ecotality ( ECTY), down 7.9%, and Highway Holdings ( HIHO), down 7.5%, were all laggards within the industrial industry with Stanley Black & Decker ( SWK) being today's industrial industry laggard.

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).

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