Precision Castparts Corp. (PCP): Today's Featured Industrial Winner

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 higher today making it today's featured industrial winner. The industry as a whole closed the day up 1.2%. By the end of trading, Precision Castparts rose $1.95 (1.1%) to $184.50 on light volume. Throughout the day, 499,023 shares of Precision Castparts exchanged hands as compared to its average daily volume of 676,200 shares. The stock ranged in a price between $183.25-$184.94 after having opened the day at $183.32 as compared to the previous trading day's close of $182.55. Other companies within the Industrial industry that increased today were: Ecotality ( ECTY), up 15.9%, Barnes Group ( B), up 14.8%, Bonso Electronics International ( BNSO), up 10%, and Calgon Carbon Corporation ( CCC), up 8.7%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Precision Castparts Corp. manufactures and sells metal components and products worldwide. Precision Castparts has a market cap of $26.72 billion and is part of the industrial goods sector. The company has a P/E ratio of 19.7, above the S&P 500 P/E ratio of 17.7. Shares are down 3.7% year to date as of the close of trading on Thursday. 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 good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

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).

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.
null

If you liked this article you might like

DOW, TJX, GOOGL: Jim Cramer's Views

Cramer: These Are the Times That Try Our Theses

Cramer: Alcoa Shows Astounding Growth in Europe and China

Common Sense Says Market Will Hold Steady

Common Sense Says Market Will Hold Steady

Alcoa Puts 3 Dissidents on Board, Just Meeting Activist's Deadline