ABB Ltd. (ABB): 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.

ABB ( ABB) pushed the Industrial Goods sector lower today making it today's featured Industrial Goods laggard. The sector as a whole closed the day down 0.4%. By the end of trading, ABB fell 37 cents (-1.7%) to $20.94 on average volume. Throughout the day, 1.5 million shares of ABB exchanged hands as compared to its average daily volume of 1.8 million shares. The stock ranged in price between $20.84-$21.20 after having opened the day at $21.14 as compared to the previous trading day's close of $21.31. Other companies within the Industrial Goods sector that declined today were: Adept Technology ( ADEP), down 14.9%, Exide Technologies ( XIDE), down 11.5%, China Advanced Construction Materials Group ( CADC), down 10.7%, and PMFG ( PMFG), down 9%.
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ABB Ltd provides power and automation technologies for utility and industrial customers worldwide. ABB has a market cap of $48.71 billion and is part of the industrial industry. The company has a P/E ratio of 15.4, below the S&P 500 P/E ratio of 17.7. Shares are up 2.2% year to date as of the close of trading on Wednesday. Currently there are five analysts that rate ABB a buy, one analyst rates it a sell, and three rate it a hold.

TheStreet Ratings rates ABB as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, Bonso Electronics International ( BNSO), up 15.4%, Continental Materials Corporation ( CUO), up 12.9%, India Globalization Capital ( IGC), up 12.1%, and Xinyuan Real Estate ( XIN), up 10.8%, were all gainers within the industrial goods sector with Raytheon Company ( RTN) 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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