KUB, ITW And HON, Pushing Industrial Industry Downward

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

One out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading up 1 points (0.0%) at 15,277 as of Thursday, May 16, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,398 issues advancing vs. 1,509 declining with 138 unchanged.

The Industrial industry currently is unchanged today versus the S&P 500, which is down 0.10. On the negative front, top decliners within the industry include ABB ( ABB), down 0.54, and Siemens ( SI), down 0.53.

TheStreet Ratings group would like to highlight 3 stocks pushing the industry lower today:

3. Kubota Corporation ( KUB) is one of the companies pushing the Industrial industry lower today. As of noon trading, Kubota Corporation is down $0.94 (-1.1%) to $82.71 on light volume Thus far, 14,263 shares of Kubota Corporation exchanged hands as compared to its average daily volume of 113,500 shares. The stock has ranged in price between $82.61-$83.33 after having opened the day at $83.14 as compared to the previous trading day's close of $83.65.

Kubota Corporation, together with its subsidiaries, manufactures and sells machinery, and other industrial and consumer products. Kubota Corporation has a market cap of $20.2 billion and is part of the industrial goods sector. The company has a P/E ratio of 41.9, above the S&P 500 P/E ratio of 17.7. Shares are up 45.1% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Kubota Corporation 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, solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Kubota Corporation Ratings Report now.

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2. As of noon trading, Illinois Tool Works ( ITW) is down $0.43 (-0.6%) to $69.75 on light volume Thus far, 752,924 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 $69.60-$70.15 after having opened the day at $69.90 as compared to the previous trading day's close of $70.18.

Illinois Tool Works Inc. manufactures and sells a range of industrial products and equipment worldwide. Illinois Tool Works has a market cap of $31.3 billion and is part of the industrial goods sector. The company has a P/E ratio of 13.0, below the S&P 500 P/E ratio of 17.7. Shares are up 15.4% year to date as of the close of trading on Wednesday.

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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1. As of noon trading, Honeywell International ( HON) is down $0.58 (-0.7%) to $78.90 on average volume Thus far, 1.6 million shares of Honeywell International exchanged hands as compared to its average daily volume of 3.7 million shares. The stock has ranged in price between $78.55-$79.29 after having opened the day at $79.29 as compared to the previous trading day's close of $79.48.

Honeywell International Inc. operates as a diversified technology and manufacturing company worldwide. Honeywell International has a market cap of $62.3 billion and is part of the industrial goods sector. The company has a P/E ratio of 20.5, above the S&P 500 P/E ratio of 17.7. Shares are up 25.8% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Honeywell International as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, 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 shows low profit margins. Get the full Honeywell International 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 3 stocks, 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).

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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