Eaton Corporation PLC (ETN): Today's Featured Industrial Goods Laggard

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 Goods sector lower today making it today's featured Industrial Goods laggard. The sector as a whole was unchanged today. By the end of trading, Eaton Corporation fell $1 (-1.8%) to $55.75 on average volume. Throughout the day, 3.2 million shares of Eaton Corporation exchanged hands as compared to its average daily volume of four million shares. The stock ranged in price between $55.19-$56.49 after having opened the day at $56.46 as compared to the previous trading day's close of $56.75. Other companies within the Industrial Goods sector that declined today were: Bonso Electronics International ( BNSO), down 6.8%, NN ( NNBR), down 5.8%, Argan ( AGX), down 4.8%, and China Ming Yang Wind Power Group ( MY), down 4.8%.
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Eaton Corporation operates as a diversified power management company worldwide. Eaton Corporation has a market cap of $19.05 billion and is part of the industrial industry. The company has a P/E ratio of 13.7, below the S&P 500 P/E ratio of 17.7. Shares are up 4% year to date as of the close of trading on Friday. Currently there are nine analysts that rate Eaton Corporation a buy, one analyst rates it a sell, and four 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, solid stock price performance, 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 positive front, Tri-Tech ( TRIT), up 14.3%, Cleantech Solutions International ( CLNT), up 8.7%, Energy Solutions ( ES), up 8.4%, and Ecotality ( ECTY), up 8%, were all gainers within the industrial goods sector with KB Home ( KBH) being today's featured industrial goods sector leader.

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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