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.
Dresser-Rand Group (
DRC) pushed the Industrial Goods sector lower today making it today's featured Industrial Goods laggard. The sector as a whole closed the day up 0.2%. By the end of trading, Dresser-Rand Group fell $1.05 (-1.8%) to $56.94 on average volume. Throughout the day, 563,534 shares of Dresser-Rand Group exchanged hands as compared to its average daily volume of 498,800 shares. The stock ranged in price between $56.69-$58.33 after having opened the day at $58.08 as compared to the previous trading day's close of $57.99. Other companies within the Industrial Goods sector that declined today were:
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%.
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Dresser-Rand Group Inc., together with its subsidiaries, engages in the design, manufacture, sale, and service of engineered rotating equipment solutions to the oil, gas, chemical, petrochemical, process, power generation, military, and other industries worldwide. Dresser-Rand Group has a market cap of $4.62 billion and is part of the industrial industry. The company has a P/E ratio of 25.8, above the S&P 500 P/E ratio of 17.7. Shares are up 3.3% year to date as of the close of trading on Wednesday. Currently there are seven analysts that rate Dresser-Rand Group a buy, no analysts rate it a sell, and four rate it a hold.
TheStreet Ratings rates Dresser-Rand Group as a
buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, good cash flow from operations, solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins.
On the positive front,
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%, were all gainers within the industrial goods sector with
Cummins (
CMI) 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).
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