5 Stocks Underperforming Today In The Industrial Goods Sector

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

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 52 points (-0.4%) at 14,567 as of Thursday, April 18, 2013, 12:45 PM ET. The NYSE advances/declines ratio sits at 1,288 issues advancing vs. 1,600 declining with 135 unchanged.

The Industrial Goods sector currently sits down 0.32 versus the S&P 500, which is down 0.48. On the negative front, top decliners within the sector include James Hardie Industries ( JHX), down 3.88, PulteGroup ( PHM), down 3.56, Lennar Corporation ( LEN), down 3.08, Vulcan Materials Company ( VMC), down 2.87 and DR Horton ( DHI), down 2.98. A company within the sector that increased today was Sherwin-Williams Company ( SHW), up 2.16.

TheStreet Ratings group would like to highlight 5 stocks pushing the sector lower today:

5. Cummins ( CMI) is one of the companies pushing the Industrial Goods sector lower today. As of noon trading, Cummins is down $1.62 (-1.5%) to $106.39 on average volume Thus far, 928,746 shares of Cummins exchanged hands as compared to its average daily volume of 1.7 million shares. The stock has ranged in price between $106.03-$109.04 after having opened the day at $108.39 as compared to the previous trading day's close of $108.01.

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 $21.1 billion and is part of the industrial industry. The company has a P/E ratio of 12.8, below the S&P 500 P/E ratio of 17.7. Shares are down 0.3% year to date as of the close of trading on Wednesday.

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, increase in stock price during the past year, 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 sub par growth in net income. Get the full Cummins Ratings Report now.

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4. As of noon trading, Cemex S.A.B. de C.V ( CX) is down $0.26 (-2.3%) to $11.28 on average volume Thus far, 7.1 million shares of Cemex S.A.B. de C.V exchanged hands as compared to its average daily volume of 18.3 million shares. The stock has ranged in price between $11.27-$11.65 after having opened the day at $11.59 as compared to the previous trading day's close of $11.55.

CEMEX, S.A.B. de C.V., through its subsidiaries, engages in the production, marketing, distribution, and sale of cement, ready-mix concrete, aggregates, and other construction materials worldwide. Cemex S.A.B. de C.V has a market cap of $12.9 billion and is part of the materials & construction industry. Shares are up 17.0% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Cemex S.A.B. de C.V as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and poor profit margins. Get the full Cemex S.A.B. de C.V Ratings Report now.

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3. As of noon trading, Lockheed Martin Corporation ( LMT) is down $0.64 (-0.7%) to $94.92 on light volume Thus far, 503,413 shares of Lockheed Martin Corporation exchanged hands as compared to its average daily volume of 2.7 million shares. The stock has ranged in price between $94.54-$95.95 after having opened the day at $95.77 as compared to the previous trading day's close of $95.56.

Lockheed Martin Corporation, a security and aerospace company, engages in the research, design, development, manufacture, integration, and sustainment of advanced technology systems and products for defense, civil, and commercial applications in the United States and internationally. Lockheed Martin Corporation has a market cap of $31.0 billion and is part of the aerospace/defense industry. The company has a P/E ratio of 11.5, below the S&P 500 P/E ratio of 17.7. Shares are up 3.5% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Lockheed Martin Corporation as a hold. The company's strengths can be seen in multiple areas, such as its notable return on equity and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and weak operating cash flow. Get the full Lockheed Martin Corporation Ratings Report now.

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2. As of noon trading, Honeywell International ( HON) is down $0.42 (-0.6%) to $71.47 on average volume Thus far, 2.0 million shares of Honeywell International exchanged hands as compared to its average daily volume of 3.7 million shares. The stock has ranged in price between $71.05-$71.89 after having opened the day at $71.74 as compared to the previous trading day's close of $71.89.

Honeywell International Inc. operates as a diversified technology and manufacturing company worldwide. Honeywell International has a market cap of $57.3 billion and is part of the industrial industry. The company has a P/E ratio of 19.8, above the S&P 500 P/E ratio of 17.7. Shares are up 13.3% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Honeywell International as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Honeywell International Ratings Report now.

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1. As of noon trading, Boeing ( BA) is down $0.59 (-0.7%) to $86.10 on light volume Thus far, 1.2 million shares of Boeing exchanged hands as compared to its average daily volume of 5.5 million shares. The stock has ranged in price between $85.80-$87.16 after having opened the day at $87.01 as compared to the previous trading day's close of $86.69.

The Boeing Company, together with its subsidiaries, engages in the design, development, manufacture, sale, and support of commercial jetliners, military aircraft, satellites, missile defense, human space flight, and launch systems and services worldwide. Boeing has a market cap of $65.8 billion and is part of the aerospace/defense industry. The company has a P/E ratio of 17.0, below the S&P 500 P/E ratio of 17.7. Shares are up 15.0% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Boeing as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Boeing Ratings Report now.

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.

If you are interested in one of these 3 stocks, 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).

A reminder about TheStreet Ratings group: 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.
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