Cummins Inc (CMI): Industrial Goods' Featured Champion Of The Day

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 0.2%. By the end of trading, Cummins rose $1.53 (1.4%) to $114.07 on average volume. Throughout the day, 1.6 million shares of Cummins exchanged hands as compared to its average daily volume of 1.6 million shares. The stock ranged in a price between $112.54-$114.25 after having opened the day at $112.71 as compared to the previous trading day's close of $112.54. Other companies within the Industrial Goods sector that increased today were: China BAK Battery ( CBAK), up 6.4%, Magnetek ( MAG), up 6.3%, Capstone Turbine Corporation ( CPST), up 5.9%, and Edwards Group ( EVAC), up 5.4%.
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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 $21.22 billion and is part of the industrial industry. The company has a P/E ratio of 12.9, below the S&P 500 P/E ratio of 17.7. Shares are up 3.9% year to date as of the close of trading on Wednesday. Currently there are eight analysts that rate Cummins a buy, no analysts rate it a sell, and seven 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.

On the negative front, Exide Technologies ( XIDE), down 47.5%, Intellicheck Mobilisa ( IDN), down 10.3%, Altair Nanotechnologies ( ALTI), down 8.7%, and Real Goods Solar ( RSOL), down 7.7%, were all laggards within the industrial goods sector with Dresser-Rand Group ( DRC) being today's industrial goods sector laggard.

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).

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