Precision Castparts Corp. (PCP): Today's Featured Industrial 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 industry lower today making it today's featured Industrial laggard. The industry as a whole closed the day down 0.3%. By the end of trading, Precision Castparts fell $5.35 (-2.8%) to $183.79 on heavy volume. Throughout the day, 1.3 million shares of Precision Castparts exchanged hands as compared to its average daily volume of 655,800 shares. The stock ranged in price between $182.82-$188.95 after having opened the day at $188.34 as compared to the previous trading day's close of $189.14. Other companies within the Industrial industry that declined today were: Clean Diesel Technologies ( CDTI), down 7.1%, NF Energy Saving ( NFEC), down 6.2%, CECO Environmental ( CECE), down 5.7%, and Euro Tech Holdings Company ( CLWT), down 5.7%.
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Precision Castparts Corp. manufactures and sells metal components and products worldwide. Precision Castparts has a market cap of $27.36 billion and is part of the industrial goods sector. The company has a P/E ratio of 20.7, above the S&P 500 P/E ratio of 17.7. Shares are down 0.1% year to date as of the close of trading on Tuesday. 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 notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, Advanced Emissions Solutions ( ADES), up 16.4%, China Valves Technology ( CVVT), up 11.1%, Proto Labs ( PRLB), up 8.2%, and CVD Equipment Corporation ( CVV), up 6.7%, were all gainers within the industrial industry with Pentair ( PNR) being today's featured industrial industry leader.

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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