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 up 1%. By the end of trading, Precision Castparts fell $2.96 (-1.6%) to $186.84 on average volume. Throughout the day, 822,384 shares of Precision Castparts exchanged hands as compared to its average daily volume of 685,500 shares. The stock ranged in price between $186.45-$190.29 after having opened the day at $190.12 as compared to the previous trading day's close of $189.80. Other companies within the Industrial Goods sector that declined today were: Bonso Electronics International ( BNSO), down 9.4%, ExOne ( XONE), down 8.6%, 3D Systems Corporation ( DDD), down 6.4%, and Stratasys ( SSYS), down 6.4%.
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Precision Castparts Corp. manufactures and sells metal components and products worldwide. Precision Castparts has a market cap of $27.84 billion and is part of the industrial industry. The company has a P/E ratio of 20.7, above the S&P 500 P/E ratio of 17.7. Shares are up 1% year to date as of the close of trading on Monday. Currently there are 14 analysts that rate Precision Castparts a buy, no analysts rate it a sell, and four 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 has had somewhat disappointing return on equity.

On the positive front, Real Goods Solar ( RSOL), up 36%, Continental Materials Corporation ( CUO), up 13.5%, Masco Corporation ( MAS), up 12.5%, and Hovnanian ( HOV), up 10.9%, were all gainers within the industrial goods sector with Lennar Corporation ( LEN) 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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