Declines From Precision Castparts Corp. (PCP) Drive Down Industrial Industry

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 lower today making it today's featured Industrial laggard. The industry as a whole closed the day down 0.3%. By the end of trading, Precision Castparts fell $3.29 (-1.7%) to $189.62 on average volume. Throughout the day, 642,463 shares of Precision Castparts exchanged hands as compared to its average daily volume of 686,800 shares. The stock ranged in price between $189.08-$193.98 after having opened the day at $193.33 as compared to the previous trading day's close of $192.91. Other companies within the Industrial industry that declined today were: China Valves Technology ( CVVT), down 9.3%, Broadwind Energy ( BWEN), down 8.2%, Continental Materials Corporation ( CUO), down 8.1%, and Dixie Group ( DXYN), down 7.7%.
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Precision Castparts Corp. manufactures and sells metal components and products worldwide. Precision Castparts has a market cap of $28.59 billion and is part of the industrial goods sector. The company has a P/E ratio of 21.1, above the S&P 500 P/E ratio of 17.7. Shares are up 1.9% year to date as of the close of trading on Friday. Currently there are 13 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.

On the positive front, ZBB Energy Corporation ( ZBB), up 16.7%, Chicago Rivet & Machine ( CVR), up 8.8%, Energy Recovery ( ERII), up 7.1%, and Altair Nanotechnologies ( ALTI), up 6.8%, were all gainers within the industrial industry with Dresser-Rand Group ( DRC) being today's featured industrial industry leader.

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).

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