Cummins Inc (CMI): Today's Featured Industrial 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

Cummins ( CMI) pushed the Industrial industry higher today making it today's featured industrial winner. The industry as a whole closed the day up 1.5%. By the end of trading, Cummins rose $2.75 (2.6%) to $106.41 on average volume. Throughout the day, 2,352,799 shares of Cummins exchanged hands as compared to its average daily volume of 1,777,100 shares. The stock ranged in a price between $104.14-$106.58 after having opened the day at $104.42 as compared to the previous trading day's close of $103.66. Other companies within the Industrial industry that increased today were: Tower International ( TOWR), up 17.6%, Metalico ( MEA), up 13.3%, Ballard Power Systems ( BLDP), up 11.7% and Generac Holdings ( GNRC), up 9.9%.
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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 $20.2 billion and is part of the industrial goods sector. The company has a P/E ratio of 13.8, below the S&P 500 P/E ratio of 17.7. Shares are down 4.3% year to date as of the close of trading on Wednesday. Currently there are 8 analysts that rate Cummins a buy, no analysts rate it a sell, and 7 rate it a hold.

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, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the negative front, Ecotality ( ECTY), down 9.6%, Altair Nanotechnologies ( ALTI), down 4.6%, NACCO Industries ( NC), down 4.2% and China Ming Yang Wind Power Group ( MY), down 3.1%.

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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