Mohawk Industries Inc. (MHK): Today's Featured Industrial Laggard

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

Mohawk Industries ( MHK) pushed the Industrial industry lower today making it today's featured Industrial laggard. The industry as a whole closed the day down 0.5%. By the end of trading, Mohawk Industries fell $2.57 (-2.1%) to $116.85 on light volume. Throughout the day, 557,111 shares of Mohawk Industries exchanged hands as compared to its average daily volume of 833,100 shares. The stock ranged in price between $116.75-$119.64 after having opened the day at $118.82 as compared to the previous trading day's close of $119.42. Other companies within the Industrial industry that declined today were: China Recycling Energy Corporation ( CREG), down 8.6%, ExOne ( XONE), down 8.1%, China BAK Battery ( CBAK), down 7.5% and Research Frontiers ( REFR), down 6.9%.
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Mohawk Industries, Inc., together with its subsidiaries, produces floor covering products for residential and commercial applications in the United States and for residential applications in Europe. The company operates through three segments: Mohawk, Dal-Tile, and Unilin. Mohawk Industries has a market cap of $8.7 billion and is part of the industrial goods sector. The company has a P/E ratio of 31.9, above the S&P 500 P/E ratio of 17.7. Shares are up 32.0% year to date as of the close of trading on Wednesday. Currently there are 5 analysts that rate Mohawk Industries a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Mohawk Industries 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, impressive record of earnings per share growth, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, China Ming Yang Wind Power Group ( MY), down 7.6%, Metalico ( MEA), down 7.2%, Advanced Emissions Solutions ( ADES), down 5.9% and Altair Nanotechnologies ( ALTI), down 5.1%.

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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