ABB Ltd. (ABB): 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

ABB ( ABB) pushed the Industrial Goods sector higher today making it today's featured industrial goods winner. The sector as a whole closed the day up 0.5%. By the end of trading, ABB rose $0.32 (1.4%) to $23.08 on light volume. Throughout the day, 901,476 shares of ABB exchanged hands as compared to its average daily volume of 1,718,700 shares. The stock ranged in a price between $22.94-$23.15 after having opened the day at $22.98 as compared to the previous trading day's close of $22.76. Other companies within the Industrial Goods sector that increased today were: China Valves Technology ( CVVT), up 11.6%, Bonso Electronics International ( BNSO), up 8.8%, IntriCon Corporation ( IIN), up 7.6% and Comstock ( CHCI), up 7.1%.
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ABB Ltd provides power and automation technologies for utility and industrial customers worldwide. ABB has a market cap of $52.1 billion and is part of the electronics industry. The company has a P/E ratio of 19.2, above the S&P 500 P/E ratio of 17.7. Shares are up 9.2% year to date as of the close of trading on Tuesday. Currently there are 5 analysts that rate ABB a buy, 1 analyst rates it a sell, and 1 rates it a hold.

TheStreet Ratings rates ABB as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, Fuel Tech ( FTEK), down 10.5%, Ducommun ( DCO), down 7.5%, Magnetek ( MAG), down 5.9% and Euro Tech Holdings Company ( CLWT), down 5.2% , were all laggards within the industrial goods sector with Ryland Group ( RYL) being today's industrial goods sector laggard.

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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