AGCO Corp (AGCO): Today's Featured Industrial Goods 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.

AGCO ( AGCO) pushed the Industrial Goods sector higher today making it today's featured industrial goods winner. The sector as a whole closed the day up 0.2%. By the end of trading, AGCO rose 78 cents (1.7%) to $46.15 on light volume. Throughout the day, 592,493 shares of AGCO exchanged hands as compared to its average daily volume of 1.1 million shares. The stock ranged in a price between $45.29-$46.28 after having opened the day at $45.53 as compared to the previous trading day's close of $45.37. Other companies within the Industrial Goods sector that increased today were: Ecotality ( ECTY), up 18.9%, China Recycling Energy Corporation ( CREG), up 11.7%, American Mold Guard Incorporated ( AMGI), up 9.1%, and Bonso Electronics International ( BNSO), up 7.2%.
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AGCO Corporation manufactures and distributes agricultural equipment and related replacement parts worldwide. AGCO has a market cap of $4.48 billion and is part of the industrial industry. The company has a P/E ratio of 6.4, below the S&P 500 P/E ratio of 17.7. Shares are up 5.6% year to date as of the close of trading on Monday. Currently there are six analysts that rate AGCO a buy, one analyst rates it a sell, and five rate it a hold.

TheStreet Ratings rates AGCO as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, attractive valuation levels, increase in net income and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

For investors not wanting singular stock exposure, 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).

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