Caterpillar Inc (CAT): Industrial's Starring Winner 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.

Caterpillar ( CAT) pushed the Industrial industry higher today making it today's featured industrial winner. The industry as a whole closed the day up 0.3%. By the end of trading, Caterpillar rose $1.71 (2%) to $85.90 on heavy volume. Throughout the day, 10.5 million shares of Caterpillar exchanged hands as compared to its average daily volume of six million shares. The stock ranged in a price between $84.05-$86.65 after having opened the day at $84.38 as compared to the previous trading day's close of $84.19. Other companies within the Industrial industry that increased today were: JinkoSolar ( JKS), up 16%, Ecotality ( ECTY), up 9%, Stratasys ( SSYS), up 6.9%, and Broadwind Energy ( BWEN), up 6.3%.
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Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. Caterpillar has a market cap of $55.42 billion and is part of the industrial goods sector. The company has a P/E ratio of 10, below the S&P 500 P/E ratio of 17.7. Shares are down 6% year to date as of the close of trading on Monday. Currently there are 11 analysts that rate Caterpillar a buy, no analysts rate it a sell, and nine rate it a hold.

TheStreet Ratings rates Caterpillar as a buy. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, NF Energy Saving ( NFEC), down 6.5%, Hardinge ( HDNG), down 4%, Art's-Way Manufacturing ( ARTW), down 3.4%, and CECO Environmental ( CECE), down 3.3%, were all laggards within the industrial industry with Pall Corporation ( PLL) being today's industrial industry laggard.

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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