3 Industrial Stocks Dragging The Industry Down

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 up today with the Dow Jones Industrial Average ( ^DJI) trading up 72 points (0.5%) at 14,749 as of Thursday, April 25, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 2,049 issues advancing vs. 833 declining with 158 unchanged.

The Industrial industry currently sits up 0.7% versus the S&P 500, which is up 0.7%. Top gainers within the industry include Graco Incorporated ( GGG), up 5.6%, Illinois Tool Works ( ITW), up 2.5%, CNH Global ( CNH), up 2.3%, ABB ( ABB), up 2.1% and Parker Hannifin Corporation ( PH), up 1.5%.

TheStreet Ratings group would like to highlight 3 stocks pushing the industry lower today:

3. Kubota Corporation ( KUB) is one of the companies pushing the Industrial industry lower today. As of noon trading, Kubota Corporation is down $2.02 (-2.7%) to $72.71 on average volume Thus far, 43,255 shares of Kubota Corporation exchanged hands as compared to its average daily volume of 104,300 shares. The stock has ranged in price between $72.17-$72.78 after having opened the day at $72.47 as compared to the previous trading day's close of $74.73.

Kubota Corporation, together with its subsidiaries, manufactures and sells machinery, and other industrial and consumer products. Kubota Corporation has a market cap of $18.5 billion and is part of the industrial goods sector. The company has a P/E ratio of 38.3, above the S&P 500 P/E ratio of 17.7. Shares are up 29.7% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Kubota Corporation 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, solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Kubota Corporation Ratings Report now.

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2. As of noon trading, Reliance Steel and Aluminum ( RS) is down $3.04 (-4.5%) to $64.00 on heavy volume Thus far, 1.2 million shares of Reliance Steel and Aluminum exchanged hands as compared to its average daily volume of 602,000 shares. The stock has ranged in price between $59.44-$68.87 after having opened the day at $65.43 as compared to the previous trading day's close of $67.04.

Reliance Steel & Aluminum Co. operates as a metals service center company. Reliance Steel and Aluminum has a market cap of $5.1 billion and is part of the industrial goods sector. The company has a P/E ratio of 12.4, below the S&P 500 P/E ratio of 17.7. Shares are up 8.0% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Reliance Steel and Aluminum as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Reliance Steel and Aluminum Ratings Report now.

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1. As of noon trading, Stanley Black & Decker ( SWK) is down $2.04 (-2.6%) to $76.04 on heavy volume Thus far, 2.3 million shares of Stanley Black & Decker exchanged hands as compared to its average daily volume of 1.5 million shares. The stock has ranged in price between $75.01-$77.12 after having opened the day at $75.71 as compared to the previous trading day's close of $78.08.

Stanley Black & Decker, Inc. provides power and hand tools, mechanical access solutions, and electronic security and monitoring systems for various industrial applications primarily in the United States, Canada, Europe, and Asia. Stanley Black & Decker has a market cap of $12.4 billion and is part of the industrial goods sector. The company has a P/E ratio of 28.5, above the S&P 500 P/E ratio of 17.7. Shares are up 5.6% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Stanley Black & Decker as a buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full Stanley Black & Decker 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 5 stocks, 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).

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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