Emerson Electric Co. (EMR): Today's Featured Industrial Goods Winner

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

Emerson Electric ( EMR) pushed the Industrial Goods sector higher today making it today's featured industrial goods winner. The sector as a whole closed the day up 1.0%. By the end of trading, Emerson Electric rose $0.64 (1.2%) to $55.28 on average volume. Throughout the day, 4,860,594 shares of Emerson Electric exchanged hands as compared to its average daily volume of 3,557,600 shares. The stock ranged in a price between $54.75-$55.57 after having opened the day at $54.91 as compared to the previous trading day's close of $54.64. Other companies within the Industrial Goods sector that increased today were: Real Goods Solar ( RSOL), up 16.8%, JinkoSolar ( JKS), up 15.3%, Ecotality ( ECTY), up 13.4% and Argan ( AGX), up 13.1%.
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Emerson Electric Co., a diversified technology company, engages in designing and supplying products and technology, and providing engineering services and solutions to the industrial, commercial, and consumer markets worldwide. Emerson Electric has a market cap of $38.8 billion and is part of the industrial industry. The company has a P/E ratio of 19.3, above the S&P 500 P/E ratio of 17.7. Shares are up 3.2% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates Emerson Electric as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, good cash flow from operations, increase in net income and largely solid financial position with reasonable debt levels by most measures. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the negative front, China BAK Battery ( CBAK), down 11.1%, Erickson Air-Crane ( EAC), down 9.8%, Exide Technologies ( XIDE), down 8.8% and China Advanced Construction Materials Group ( CADC), down 8.8%.

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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