Smith & Wesson Holding Corporation (SWHC): 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.

Smith & Wesson Holding Corporation ( SWHC) pushed the Industrial Goods sector lower today making it today's featured Industrial Goods laggard. The sector as a whole closed the day up 0.6%. By the end of trading, Smith & Wesson Holding Corporation fell 10 cents (-1.1%) to $8.83 on light volume. Throughout the day, 1.8 million shares of Smith & Wesson Holding Corporation exchanged hands as compared to its average daily volume of 4.9 million shares. The stock ranged in price between $8.80-$8.95 after having opened the day at $8.93 as compared to the previous trading day's close of $8.93. Other companies within the Industrial Goods sector that declined today were: Unifi ( UFI), down 8.5%, Compx International ( CIX), down 5.4%, LSI Industries ( LYTS), down 5.4%, and Highpower International ( HPJ), down 5%.
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Smith & Wesson Holding Corporation provides products and services for safety, security, protection, and sports in the United States and internationally. Smith & Wesson Holding Corporation has a market cap of $589.7 million and is part of the aerospace/defense industry. The company has a P/E ratio of 10.1, below the S&P 500 P/E ratio of 17.7. Shares are up 5.5% year to date as of the close of trading on Thursday. Currently there is one analyst that rates Smith & Wesson Holding Corporation a buy, no analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates Smith & Wesson Holding Corporation as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, attractive valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, Terex ( TEX), up 12.7%, Edwards Group ( EVAC), up 10.4%, Patrick Industries ( PATK), up 8.8%, and Cleantech Solutions International ( CLNT), up 8.1%, were all gainers within the industrial goods sector with Cummins ( CMI) 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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