Dow Today: American Express (AXP) Leads The Day Higher, Caterpillar (CAT) Lags

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.

The Dow Jones Industrial Average ( ^DJI) closed up 60 points (+0.4%) at 15,275. During the day, 550.1 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 596.6 million. The NYSE advances/declines ratio closed at 1,643 issues advancing vs. 1,371 declining with 112 unchanged.
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The Dow component that led the way higher today was American Express (NYSE: AXP), which sported a $1.27 gain (+1.8%) bringing the stock to $72.78. This single gain lifted the Dow Jones Industrial Average by 9.61 points or roughly accounting for 16% of the Dow's overall gain. Volume for American Express ended the day at 5.1 million shares traded vs. an average daily trading volume of 5.2 million shares.

American Express has a market cap of $76.67 billion and is part of the financial sector and financial services industry. Shares are up 24.4% year to date as of Tuesday's close. The stock's dividend yield sits at 1.3%.

American Express Company provides charge and credit payment card products and travel-related services to customers worldwide. The company has a P/E ratio of 17.6, below the S&P 500 P/E ratio of 17.7.

TheStreet Ratings rates American Express as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, good cash flow from operations, increase in stock price during the past year and growth in earnings per share. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Holding the Dow back today was Caterpillar (NYSE: CAT), which lagged the broader Dow index with a 55-cent decline (-0.6%) bringing the stock to $87. Volume for Caterpillar ended the day at 6.7 million shares traded vs. an average daily trading volume of 7.2 million shares.

Caterpillar has a market cap of $57.92 billion and is part of the industrial goods sector and industrial industry. Shares are down 2.3% year to date as of Tuesday's close. The stock's dividend yield sits at 2.4%.

Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. The company has a P/E ratio of 11.9, below the S&P 500 P/E ratio of 17.7.

TheStreet Ratings rates Caterpillar as a buy. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

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