5 Stocks Advancing 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

Two out of the three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 60 points (0.4%) at 15,029 as of Tuesday, May 7, 2013, 12:54 PM ET. The NYSE advances/declines ratio sits at 1,907 issues advancing vs. 994 declining with 159 unchanged.

The Industrial Goods sector currently sits up 0.2% versus the S&P 500, which is up 0.3%. Top gainers within the sector include Dresser-Rand Group ( DRC), up 4.9%, Timken Company ( TKR), up 2.9%, Stanley Black & Decker ( SWK), up 2.5%, Fastenal Company ( FAST), up 1.9% and Eaton Corporation ( ETN), up 1.7%. On the negative front, top decliners within the sector include James Hardie Industries ( JHX), down 2.36, Royal Philips Electronics ( PHG), down 2.02, NVR ( NVR), down 1.75 and Emerson Electric ( EMR), down 1.61.

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

5. Raytheon Company ( RTN) is one of the companies pushing the Industrial Goods sector higher today. As of noon trading, Raytheon Company is up $0.58 (0.91) to $63.56 on light volume Thus far, 482,342 shares of Raytheon Company exchanged hands as compared to its average daily volume of 2.0 million shares. The stock has ranged in price between $63.00-$63.62 after having opened the day at $63.13 as compared to the previous trading day's close of $62.98.

Raytheon Company designs, develops, manufactures, integrates, and supports technological products, services, and solutions for governmental and commercial customers in the United States and internationally. Raytheon Company has a market cap of $20.5 billion and is part of the aerospace/defense industry. The company has a P/E ratio of 10.9, 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. Currently there are 5 analysts that rate Raytheon Company a buy, 1 analyst rates it a sell, and 9 rate it a hold.

TheStreet Ratings rates Raytheon Company as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Raytheon Company Ratings Report now.

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4. As of noon trading, Joy Global ( JOY) is up $1.31 (2.23) to $60.02 on average volume Thus far, 1.1 million shares of Joy Global exchanged hands as compared to its average daily volume of 2.3 million shares. The stock has ranged in price between $58.80-$60.50 after having opened the day at $58.97 as compared to the previous trading day's close of $58.71.

Joy Global Inc. engages in the manufacture and servicing of mining equipment for the extraction of coal, copper, iron ore, oil sands, and other minerals. It operates in two segments, Underground Mining Machinery and Surface Mining Equipment. Joy Global has a market cap of $6.1 billion and is part of the industrial industry. The company has a P/E ratio of 43.3, above the S&P 500 P/E ratio of 17.7. Shares are down 7.9% year to date as of the close of trading on Monday. Currently there are 11 analysts that rate Joy Global a buy, no analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates Joy Global as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including poor profit margins and a generally disappointing performance in the stock itself. Get the full Joy Global Ratings Report now.

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3. As of noon trading, Illinois Tool Works ( ITW) is up $0.83 (1.26) to $66.58 on average volume Thus far, 1.0 million shares of Illinois Tool Works exchanged hands as compared to its average daily volume of 2.4 million shares. The stock has ranged in price between $65.82-$66.74 after having opened the day at $65.88 as compared to the previous trading day's close of $65.75.

Illinois Tool Works Inc. manufactures and sells a range of industrial products and equipment worldwide. Illinois Tool Works has a market cap of $29.7 billion and is part of the industrial industry. The company has a P/E ratio of 12.3, below the S&P 500 P/E ratio of 17.7. Shares are up 8.1% year to date as of the close of trading on Monday. Currently there are 9 analysts that rate Illinois Tool Works a buy, 1 analyst rates it a sell, and 7 rate it a hold.

TheStreet Ratings rates Illinois Tool Works 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, notable return on equity, expanding profit margins, increase in stock price during the past year and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Illinois Tool Works Ratings Report now.

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2. As of noon trading, Cummins ( CMI) is up $1.26 (1.14) to $112.11 on average volume Thus far, 724,163 shares of Cummins exchanged hands as compared to its average daily volume of 1.8 million shares. The stock has ranged in price between $111.14-$113.09 after having opened the day at $111.14 as compared to the previous trading day's close of $110.85.

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 $21.0 billion and is part of the industrial industry. The company has a P/E ratio of 14.2, 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. 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 somewhat weak growth in earnings per share. Get the full Cummins Ratings Report now.

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1. As of noon trading, Lockheed Martin Corporation ( LMT) is up $0.58 (0.57) to $102.77 on light volume Thus far, 653,874 shares of Lockheed Martin Corporation exchanged hands as compared to its average daily volume of 2.3 million shares. The stock has ranged in price between $102.03-$102.79 after having opened the day at $102.25 as compared to the previous trading day's close of $102.19.

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 $32.7 billion and is part of the aerospace/defense industry. The company has a P/E ratio of 11.8, below the S&P 500 P/E ratio of 17.7. Shares are up 10.7% year to date as of the close of trading on Monday. Currently there are 5 analysts that rate Lockheed Martin Corporation a buy, 1 analyst rates it a sell, and 11 rate it a hold.

TheStreet Ratings rates Lockheed Martin Corporation as a hold. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, growth in earnings per share and notable return on equity. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins. Get the full Lockheed Martin 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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