5 Industrial Goods Stocks Dragging The Sector 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

One out of the three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 4 points (0.0%) at 14,823 as of Tuesday, April 30, 2013, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,672 issues advancing vs. 1,218 declining with 158 unchanged.

The Industrial Goods sector currently is unchanged today versus the S&P 500, which is unchanged. On the negative front, top decliners within the sector include CNH Global ( CNH), down 7.69, Cummins ( CMI), down 5.77, PulteGroup ( PHM), down 2.36, DR Horton ( DHI), down 2.19 and Ingersoll-Rand ( IR), down 1.38. Top gainers within the sector include Chart Industries ( GTLS), up 7.7%, Embraer S.A ( ERJ), up 5.1%, AGCO ( AGCO), up 4.6%, Danaher Corporation ( DHR), up 1.4% and Republic Services ( RSG), up 1.4%.

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

5. Xylem ( XYL) is one of the companies pushing the Industrial Goods sector lower today. As of noon trading, Xylem is down $1.31 (-4.6%) to $26.94 on heavy volume Thus far, 1.4 million shares of Xylem exchanged hands as compared to its average daily volume of 996,600 shares. The stock has ranged in price between $26.38-$27.81 after having opened the day at $27.81 as compared to the previous trading day's close of $28.25.

Xylem Inc. engages in the design, manufacture, and application of engineered technologies for water and wastewater applications. The company operates in two segments, Water Infrastructure and Applied Water. Xylem has a market cap of $5.2 billion and is part of the industrial industry. The company has a P/E ratio of 17.5, below the S&P 500 P/E ratio of 17.7. Shares are up 2.3% year to date as of the close of trading on Monday.

TheStreet Ratings rates Xylem as a hold. 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 and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and relatively poor performance when compared with the S&P 500 during the past year. Get the full Xylem Ratings Report now.

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4. As of noon trading, Plum Creek Timber ( PCL) is down $2.64 (-5.0%) to $50.66 on heavy volume Thus far, 1.0 million shares of Plum Creek Timber exchanged hands as compared to its average daily volume of 764,900 shares. The stock has ranged in price between $49.40-$51.91 after having opened the day at $50.98 as compared to the previous trading day's close of $53.30.

Plum Creek Timber Company, Inc. is a publicly owned real estate investment trust (REIT). The trust owns and manages timberlands in the United States. Its products include lumber products, plywood, medium density fiberboard, and related by-products, such as wood chips. Plum Creek Timber has a market cap of $8.7 billion and is part of the real estate industry. The company has a P/E ratio of 42.7, above the S&P 500 P/E ratio of 17.7. Shares are up 19.8% year to date as of the close of trading on Monday.

TheStreet Ratings rates Plum Creek Timber as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, revenue growth and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Plum Creek Timber Ratings Report now.

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3. As of noon trading, Fastenal Company ( FAST) is down $1.08 (-2.2%) to $48.64 on average volume Thus far, 954,160 shares of Fastenal Company exchanged hands as compared to its average daily volume of 1.5 million shares. The stock has ranged in price between $48.63-$50.00 after having opened the day at $49.62 as compared to the previous trading day's close of $49.72.

Fastenal Company, together with its subsidiaries, operates as a wholesaler and retailer of industrial and construction supplies in the United States, Canada, and internationally. The company offers fasteners and other industrial and construction supplies under the Fastenal name. Fastenal Company has a market cap of $14.6 billion and is part of the materials & construction industry. The company has a P/E ratio of 34.0, above the S&P 500 P/E ratio of 17.7. Shares are up 5.8% year to date as of the close of trading on Monday.

TheStreet Ratings rates Fastenal Company as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value. Get the full Fastenal Company Ratings Report now.

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2. As of noon trading, Masco Corporation ( MAS) is down $1.00 (-4.9%) to $19.42 on heavy volume Thus far, 6.0 million shares of Masco Corporation exchanged hands as compared to its average daily volume of 4.8 million shares. The stock has ranged in price between $19.30-$20.44 after having opened the day at $20.14 as compared to the previous trading day's close of $20.42.

Masco Corporation engages in the manufacture, distribution, and installation of home improvement and building products primarily in North America and Europe. Masco Corporation has a market cap of $7.3 billion and is part of the materials & construction industry. Shares are up 23.8% year to date as of the close of trading on Monday.

TheStreet Ratings rates Masco Corporation as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins. Get the full Masco Corporation Ratings Report now.

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1. As of noon trading, Lennar Corporation ( LEN) is down $0.89 (-2.1%) to $40.53 on average volume Thus far, 2.7 million shares of Lennar Corporation exchanged hands as compared to its average daily volume of 4.3 million shares. The stock has ranged in price between $40.49-$41.64 after having opened the day at $41.35 as compared to the previous trading day's close of $41.42.

Lennar Corporation, together with its subsidiaries, engages in homebuilding, financial services, and real estate businesses in the United States. Lennar Corporation has a market cap of $6.8 billion and is part of the materials & construction industry. The company has a P/E ratio of 12.7, below the S&P 500 P/E ratio of 17.7. Shares are up 9.4% year to date as of the close of trading on Monday.

TheStreet Ratings rates Lennar Corporation as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, solid stock price performance, compelling growth in net income and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Get the full Lennar Corporation 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 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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