5 Industrial Goods Stocks Pushing Sector Growth

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 13 points (0.1%) at 15,338 as of Friday, May 31, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 963 issues advancing vs. 1,995 declining with 88 unchanged.

The Industrial Goods sector currently sits down 0.23 versus the S&P 500, which is down 0.09. Top gainers within the sector include Cummins ( CMI), up 3.1%, Fastenal Company ( FAST), up 2.1%, Rockwell Automation ( ROK), up 1.1%, Weyerhaeuser ( WY), up 1.2% and Emerson Electric ( EMR), up 0.7%. On the negative front, top decliners within the sector include Nidec Corporation ( NJ), down 3.29, Siemens ( SI), down 1.78 and ABB ( ABB), down 1.68.

TheStreet Ratings group would like to highlight 5 stocks pushing the sector higher today:

5. Terex ( TEX) is one of the companies pushing the Industrial Goods sector higher today. As of noon trading, Terex is up $1.54 (4.37) to $36.80 on average volume Thus far, 1.6 million shares of Terex exchanged hands as compared to its average daily volume of 2.3 million shares. The stock has ranged in price between $34.80-$37.12 after having opened the day at $35.03 as compared to the previous trading day's close of $35.26.

Terex Corporation operates as an equipment manufacturer of specialized machinery products. Terex has a market cap of $3.9 billion and is part of the industrial industry. The company has a P/E ratio of 38.4, above the S&P 500 P/E ratio of 17.7. Shares are up 25.4% year to date as of the close of trading on Thursday. Currently there are 6 analysts that rate Terex a buy, no analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates Terex as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, solid stock price performance and good cash flow from operations. However, as a counter to these strengths, we find that the company's profit margins have been poor overall. Get the full Terex Ratings Report now.

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

4. As of noon trading, Dover Corporation ( DOV) is up $1.11 (1.42) to $79.68 on average volume Thus far, 502,566 shares of Dover Corporation exchanged hands as compared to its average daily volume of 1.2 million shares. The stock has ranged in price between $77.96-$79.91 after having opened the day at $78.19 as compared to the previous trading day's close of $78.57.

Dover Corporation manufactures and sells a range of specialized products and components, and provides related consumables and services. The company operates in four segments: Communication Technologies, Energy, Engineered Systems, and Printing and Identification. Dover Corporation has a market cap of $13.3 billion and is part of the industrial industry. The company has a P/E ratio of 16.8, below the S&P 500 P/E ratio of 17.7. Shares are up 19.6% year to date as of the close of trading on Thursday. Currently there are 9 analysts that rate Dover Corporation a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Dover Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Dover Corporation Ratings Report now.

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

3. As of noon trading, Parker Hannifin Corporation ( PH) is up $1.10 (1.10) to $100.96 on average volume Thus far, 501,834 shares of Parker Hannifin Corporation exchanged hands as compared to its average daily volume of 1.2 million shares. The stock has ranged in price between $99.01-$101.76 after having opened the day at $99.51 as compared to the previous trading day's close of $99.86.

Parker Hannifin Corporation manufactures fluid power systems, electromechanical controls, and related components worldwide. Parker Hannifin Corporation has a market cap of $14.6 billion and is part of the industrial industry. The company has a P/E ratio of 15.3, below the S&P 500 P/E ratio of 17.7. Shares are up 17.4% year to date as of the close of trading on Thursday. Currently there are 6 analysts that rate Parker Hannifin Corporation a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Parker Hannifin 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, attractive valuation levels and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Parker Hannifin Corporation Ratings Report now.

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

2. As of noon trading, Illinois Tool Works ( ITW) is up $0.40 (0.57) to $70.96 on light volume Thus far, 601,142 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 $70.33-$71.35 after having opened the day at $70.45 as compared to the previous trading day's close of $70.56.

Illinois Tool Works Inc. manufactures and sells a range of industrial products and equipment worldwide. Illinois Tool Works has a market cap of $31.6 billion and is part of the industrial industry. The company has a P/E ratio of 13.2, below the S&P 500 P/E ratio of 17.7. Shares are up 16.0% year to date as of the close of trading on Thursday. Currently there are 9 analysts that rate Illinois Tool Works a buy, 1 analyst rates it a sell, and 7 rate it a hold.

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, solid stock price performance 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.

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

1. As of noon trading, General Electric ( GE) is up $0.12 (0.53) to $23.72 on average volume Thus far, 15.3 million shares of General Electric exchanged hands as compared to its average daily volume of 38.9 million shares. The stock has ranged in price between $23.55-$23.79 after having opened the day at $23.59 as compared to the previous trading day's close of $23.60.

General Electric Company operates as an infrastructure and financial services company worldwide. General Electric has a market cap of $244.4 billion and is part of the industrial industry. The company has a P/E ratio of 16.4, below the S&P 500 P/E ratio of 17.7. Shares are up 12.4% year to date as of the close of trading on Thursday. Currently there are 7 analysts that rate General Electric a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates General Electric as a buy. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, impressive record of earnings per share growth, increase in net income, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Get the full General Electric Ratings Report now.

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

If you are interested in one of these 5 stocks, 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).

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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