Dow Today: International Business Machines (IBM) Leads The Day Higher, Procter & Gamble (PG) Lags

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.

The Dow Jones Industrial Average ( ^DJI) closed up five points at 14,455. During the day, 400.5 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 620.3 million. The NYSE advances/declines ratio closed at 1,696 issues advancing vs. 1,290 declining with 111 unchanged.
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The Dow component that led the way higher today was International Business Machines (NYSE: IBM), which sported a $1.51 gain (+0.7%) bringing the stock to $212.06. This single gain lifted the Dow Jones Industrial Average by 11.43 points or roughly accounting for 228.6% of the Dow's overall gain. Volume for International Business Machines ended the day at 3.3 million shares traded vs. an average daily trading volume of 3.8 million shares.

International Business Machines has a market cap of $234.14 billion and is part of the technology sector and computer hardware industry. Shares are up 9.9% year to date as of Tuesday's close. The stock's dividend yield sits at 1.6%.

International Business Machines Corporation provides information technology (IT) products and services worldwide. The company operates in five segments: Global Technology Services, Global Business Services, Software, Systems and Technology, and Global Financing. The company has a P/E ratio of 14.6, below the S&P 500 P/E ratio of 17.7.

TheStreet Ratings rates International Business Machines as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, notable return on equity, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Holding the Dow back today was Procter & Gamble (NYSE: PG), which lagged the broader Dow index with a 37-cent decline (-0.5%) bringing the stock to $76.80. Volume for Procter & Gamble ended the day at 6.3 million shares traded vs. an average daily trading volume of 9.9 million shares.

Procter & Gamble has a market cap of $211.29 billion and is part of the consumer goods sector and consumer non-durables industry. Shares are up 13.7% year to date as of Tuesday's close. The stock's dividend yield sits at 2.9%.

The Procter & Gamble Company, together with its subsidiaries, engages in the manufacture and sale of a range of branded consumer packaged goods. The company operates in five segments: Beauty, Grooming, Health Care, Fabric Care and Home Care, and Baby Care and Family Care. The company has a P/E ratio of 19.8, above the S&P 500 P/E ratio of 17.7.

TheStreet Ratings rates Procter & Gamble as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, expanding profit margins, good cash flow from operations and compelling growth in net income. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

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