Eaton Corporation PLC (ETN): 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.

Eaton Corporation ( ETN) pushed the Industrial industry higher today making it today's featured industrial winner. The industry as a whole closed the day up 0.5%. By the end of trading, Eaton Corporation rose 89 cents (1.7%) to $52.57 on average volume. Throughout the day, 3.3 million shares of Eaton Corporation exchanged hands as compared to its average daily volume of 4.1 million shares. The stock ranged in a price between $51.53-$52.76 after having opened the day at $51.53 as compared to the previous trading day's close of $51.68. Other companies within the Industrial industry that increased today were: Compx International ( CIX), up 8.5%, Luxfer Holdings PLC ADR ( LXFR), up 7.6%, Fuelcell Energy ( FCEL), up 7.5%, and China Valves Technology ( CVVT), up 6.7%.
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Eaton Corporation operates as a diversified power management company worldwide. Eaton Corporation has a market cap of $17.58 billion and is part of the industrial goods sector. The company has a P/E ratio of 12.6, below the S&P 500 P/E ratio of 17.7. Shares are up 18.7% year to date as of the close of trading on Thursday. Currently there are nine analysts that rate Eaton Corporation a buy, no analysts rate it a sell, and five rate it a hold.

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

On the negative front, Altair Nanotechnologies ( ALTI), down 4.6%, THT Heat Transfer Technology ( THTI), down 3.3%, Illinois Tool Works ( ITW), down 3%, and Thermon Group Holdings ( THR), down 2.9%, were all laggards within the industrial industry with Pall Corporation ( PLL) 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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