Precision Castparts Corp. (PCP): 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.

Precision Castparts ( PCP) pushed the Industrial Goods sector lower today making it today's featured Industrial Goods laggard. The sector as a whole closed the day down 0.2%. By the end of trading, Precision Castparts fell $2.68 (-1.4%) to $186.77 on heavy volume. Throughout the day, 1.5 million shares of Precision Castparts exchanged hands as compared to its average daily volume of 621,200 shares. The stock ranged in price between $183.07-$189.38 after having opened the day at $188.83 as compared to the previous trading day's close of $189.45. Other companies within the Industrial Goods sector that declined today were: Aerosonic Corporation ( AIM), down 9.5%, THT Heat Transfer Technology ( THTI), down 8.7%, Schnitzer Steel Industries ( SCHN), down 7.9%, and Highpower International ( HPJ), down 7.7%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Precision Castparts Corp. manufactures and sells metal components and products worldwide. Precision Castparts has a market cap of $27.87 billion and is part of the industrial industry. The company has a P/E ratio of 21.1, above the S&P 500 P/E ratio of 17.7. Shares are up 1.1% year to date as of the close of trading on Monday. Currently there are 12 analysts that rate Precision Castparts a buy, no analysts rate it a sell, and five rate it a hold.

TheStreet Ratings rates Precision Castparts as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, increase in net income and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows low profit margins.

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).

HOLIDAY SPECIAL: Let Jim Cramer show you every trade he is making in his $2.5 Million portfolio. Join now for 14-days FREE. Sign up today to get e-mail alerts before every trade.
null

If you liked this article you might like

DOW, TJX, GOOGL: Jim Cramer's Views

Cramer: These Are the Times That Try Our Theses

Cramer: Alcoa Shows Astounding Growth in Europe and China

Common Sense Says Market Will Hold Steady

Common Sense Says Market Will Hold Steady

Alcoa Puts 3 Dissidents on Board, Just Meeting Activist's Deadline