Deere & Co (DE): 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.

Deere ( DE) pushed the Industrial Goods sector lower today making it today's featured Industrial Goods laggard. The sector as a whole closed the day down 0.4%. By the end of trading, Deere fell $1.25 (-1.4%) to $90.57 on average volume. Throughout the day, 3.7 million shares of Deere exchanged hands as compared to its average daily volume of 2.8 million shares. The stock ranged in price between $89.93-$91.62 after having opened the day at $90.37 as compared to the previous trading day's close of $91.82. Other companies within the Industrial Goods sector that declined today were: WSI Industries ( WSCI), down 20.9%, Intellicheck Mobilisa ( IDN), down 16.7%, Euro Tech Holdings Company ( CLWT), down 13.1%, and China BAK Battery ( CBAK), down 9.2%.
  • 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.

Deere & Company manufactures and distributes agriculture and turf equipment, and construction and forestry equipment worldwide. Deere has a market cap of $35.93 billion and is part of the industrial industry. The company has a P/E ratio of 11.6, below the S&P 500 P/E ratio of 17.7. Shares are up 6.2% year to date as of the close of trading on Monday. Currently there are 10 analysts that rate Deere a buy, no analysts rate it a sell, and seven rate it a hold.

TheStreet Ratings rates Deere as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, solid stock price performance, impressive record of earnings per share growth and increase in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the positive front, China Valves Technology ( CVVT), up 10%, Skullcandy ( SKUL), up 7.5%, Caesarstone Sdot-Yam ( CSTE), up 7%, and Vertex Energy ( VTNR), up 5%, were all gainers within the industrial goods sector with USG ( USG) 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).

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

This Is What a $300 Million Robotic Weed Killer Looks Like

FMC Stock's Impressive Rally Has Another 20% to Gain: Jim Cramer

These Stocks Are Ready to Reverse Course

14 Stocks That Could Skyrocket From Trump's Border Wall With Mexico

Credit Suisse: Deere Still Boasts an 'Encouraging' Backdrop