Chicago Bridge & Iron Company (CBI): 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.

Chicago Bridge & Iron Company ( CBI) pushed the Industrial Goods sector lower today making it today's featured Industrial Goods laggard. The sector as a whole closed the day up 0.4%. By the end of trading, Chicago Bridge & Iron Company fell $1.11 (-2.1%) to $51.86 on heavy volume. Throughout the day, 2.7 million shares of Chicago Bridge & Iron Company exchanged hands as compared to its average daily volume of 1.5 million shares. The stock ranged in price between $51.42-$52.25 after having opened the day at $51.64 as compared to the previous trading day's close of $52.97. Other companies within the Industrial Goods sector that declined today were: India Globalization Capital ( IGC), down 7.5%, Skullcandy ( SKUL), down 7%, Simpson Manufacturing ( SSD), down 6.5%, and PMFG ( PMFG), down 4.4%.
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Chicago Bridge & Iron Company N.V. provides conceptual design, technology, engineering, procurement, fabrication, construction, and commissioning services to energy and natural resource industries worldwide. Chicago Bridge & Iron Company has a market cap of $5.17 billion and is part of the materials & construction industry. The company has a P/E ratio of 18.6, above the S&P 500 P/E ratio of 17.7. Shares are up 15.2% year to date as of the close of trading on Thursday. Currently there are 10 analysts that rate Chicago Bridge & Iron Company a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates Chicago Bridge & Iron Company as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, growth in earnings per share, notable return on equity and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, THT Heat Transfer Technology ( THTI), up 11.6%, Intellicheck Mobilisa ( IDN), up 10.7%, McDermott International ( MDR), up 8.6%, and Goldfield ( GV), up 7.9%, were all gainers within the industrial goods sector with Pentair ( PNR) 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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