B/E Aerospace Inc (BEAV): 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

B/E Aerospace ( BEAV) pushed the Industrial Goods sector higher today making it today's featured industrial goods winner. The sector as a whole was unchanged today. By the end of trading, B/E Aerospace rose $0.64 (1.0%) to $62.76 on light volume. Throughout the day, 582,230 shares of B/E Aerospace exchanged hands as compared to its average daily volume of 1,038,000 shares. The stock ranged in a price between $61.69-$62.88 after having opened the day at $61.88 as compared to the previous trading day's close of $62.12. Other companies within the Industrial Goods sector that increased today were: Fuelcell Energy ( FCEL), up 28.8%, China Advanced Construction Materials Group ( CADC), up 17.1%, Ballard Power Systems ( BLDP), up 15.8% and Adept Technology ( ADEP), up 12.4%.
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B/E Aerospace, Inc. designs, manufactures, sells, and services cabin interior products for commercial aircraft and business jets worldwide. It operates in three segments: Commercial Aircraft, Consumables Management, and Business Jet. B/E Aerospace has a market cap of $6.5 billion and is part of the aerospace/defense industry. The company has a P/E ratio of 25.0, 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 Thursday. Currently there are 12 analysts that rate B/E Aerospace a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates B/E Aerospace 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, expanding profit margins, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the negative front, Exide Technologies ( XIDE), down 42.6%, Highway Holdings ( HIHO), down 15.6%, Nordson Corporation ( NDSN), down 7.0% and Cleantech Solutions International ( CLNT), down 7.0% , were all laggards within the industrial goods sector with Fluor Corporation ( FLR) 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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