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 1.5%. By the end of trading, Precision Castparts rose $2.18 (1.0%) to $212.91 on average volume. Throughout the day, 499,745 shares of Precision Castparts exchanged hands as compared to its average daily volume of 625,300 shares. The stock ranged in a price between $211.91-$215.00 after having opened the day at $213.26 as compared to the previous trading day's close of $210.73. Other companies within the Industrial industry that increased today were: Ballard Power Systems ( BLDP), up 31.6%, Hydrogenics Corporation ( HYGS), up 17.5%, Capstone Turbine Corporation ( CPST), up 13.6% and Columbus McKinnon Corporation ( CMCO), 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 $30.9 billion and is part of the industrial goods sector. The company has a P/E ratio of 21.6, above the S&P 500 P/E ratio of 17.7. Shares are up 11.3% year to date as of the close of trading on Friday. 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 robust revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, impressive record of earnings per share growth and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the negative front, Cleantech Solutions International ( CLNT), down 14.4%, Intellicheck Mobilisa ( IDN), down 10.2%, Bonso Electronics International ( BNSO), down 9.5% and Adept Technology ( ADEP), down 7.0% , were all laggards within the industrial industry with Dresser-Rand Group ( DRC) 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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