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. Cummins ( CMI) pushed the Industrial Goods sector higher today making it today's featured industrial goods winner. The sector as a whole closed the day up 1.3%. By the end of trading, Cummins rose $2.32 (2%) to $116.45 on average volume. Throughout the day, 1.7 million shares of Cummins exchanged hands as compared to its average daily volume of 1.7 million shares. The stock ranged in a price between $115.39-$118.43 after having opened the day at $115.48 as compared to the previous trading day's close of $114.13. Other companies within the Industrial Goods sector that increased today were: Ballard Power Systems ( BLDP), up 14.4%, Zoltek Companies ( ZOLT), up 13.7%, Park-Ohio Holdings ( PKOH), up 12.6%, and Ecotality ( ECTY), up 9.4%.
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Cummins Inc. designs, manufactures, distributes, and services diesel and natural gas engines, and engine-related component products. It operates in four segments: Engine, Components, Power Generation, and Distribution. Cummins has a market cap of $21.84 billion and is part of the industrial industry. The company has a P/E ratio of 13.3, below the S&P 500 P/E ratio of 17.7. Shares are up 5.3% year to date as of the close of trading on Monday. Currently there are seven analysts that rate Cummins a buy, no analysts rate it a sell, and eight rate it a hold. TheStreet Ratings rates Cummins as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, attractive valuation levels and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.