Dow Today: International Business Machines (IBM) Leads The Day Higher, Coca-Cola (KO) Lags

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 up 100 points (+0.8%) at 13,235. During the day, 539.7 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 620.9 million. The NYSE advances/declines ratio closed at 2,032 issues advancing vs. 1,007 declining with 114 unchanged.
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The Dow component that led the way higher today was International Business Machines (NYSE: IBM), which sported a $1.97 gain (+1%) bringing the stock to $193.73. This single gain lifted the Dow Jones Industrial Average by 14.91 points or roughly accounting for 14.9% of the Dow's overall gain. Volume for International Business Machines ended the day at 2.9 million shares traded vs. an average daily trading volume of 4.2 million shares.

International Business Machines has a market cap of $216.94 billion and is part of the technology sector and computer hardware industry. Shares are up 4.3% year to date as of Friday's close. The stock's dividend yield sits at 1.8%.

International Business Machines Corporation provides information technology (IT) products and services worldwide. The company operates in five segments: Global Technology Services, Global Business Services, Software, Systems and Technology, and Global Financing. The company has a P/E ratio of 13.9, below the S&P 500 P/E ratio of 17.7.

TheStreet Ratings rates International Business Machines as a buy. The company's strengths can be seen in multiple areas, such as its notable return on equity, growth in earnings per share and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Holding the Dow back today was Coca-Cola (NYSE: KO), which lagged the broader Dow index with a 14-cent decline (-0.4%) bringing the stock to $37.52. Volume for Coca-Cola ended the day at 12.3 million shares traded vs. an average daily trading volume of 15.7 million shares.

Coca-Cola has a market cap of $168.64 billion and is part of the consumer goods sector and food & beverage industry. Shares are up 7.5% year to date as of Friday's close. The stock's dividend yield sits at 2.7%.

The Coca-Cola Company, a beverage company, engages in the manufacture, marketing, and sale of nonalcoholic beverages worldwide. The company primarily offers sparkling beverages and still beverages. The company has a P/E ratio of 19.6, above the S&P 500 P/E ratio of 17.7.

TheStreet Ratings rates Coca-Cola as a buy. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, revenue growth, reasonable valuation levels, expanding profit margins and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

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