Precision Castparts Corp. (PCP): 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

Precision Castparts ( PCP) pushed the Industrial industry higher today making it today's featured industrial winner. The industry as a whole closed the day up 0.7%. By the end of trading, Precision Castparts rose $3.29 (1.6%) to $209.97 on heavy volume. Throughout the day, 1,137,181 shares of Precision Castparts exchanged hands as compared to its average daily volume of 599,800 shares. The stock ranged in a price between $206.26-$211.00 after having opened the day at $206.71 as compared to the previous trading day's close of $206.68. Other companies within the Industrial industry that increased today were: Coleman Cable ( CCIX), up 19.1%, Arotech Corporation ( ARTX), up 10.4%, JinkoSolar ( JKS), up 10.0% and Middleby Corporation ( MIDD), up 8.2%.
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Precision Castparts Corp. manufactures and sells metal components and products worldwide. Precision Castparts has a market cap of $28.1 billion and is part of the industrial goods sector. The company has a P/E ratio of 20.7, above the S&P 500 P/E ratio of 17.7. Shares are up 9.1% year to date as of the close of trading on Thursday. Currently there are 15 analysts that rate Precision Castparts a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Precision Castparts 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, good cash flow from operations, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the negative front, Research Frontiers ( REFR), down 14.3%, Intellicheck Mobilisa ( IDN), down 10.4%, China BAK Battery ( CBAK), down 5.3% and Global Power Equipment Group ( GLPW), down 3.5% , were all laggards within the industrial industry with Caterpillar ( CAT) being today's industrial industry laggard.

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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