Deere & Co (DE): 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

Deere ( DE) pushed the Industrial Goods sector higher today making it today's featured industrial goods winner. The sector as a whole closed the day up 0.4%. By the end of trading, Deere rose $1.25 (1.4%) to $88.36 on average volume. Throughout the day, 3,198,069 shares of Deere exchanged hands as compared to its average daily volume of 3,126,800 shares. The stock ranged in a price between $87.11-$88.44 after having opened the day at $87.50 as compared to the previous trading day's close of $87.11. Other companies within the Industrial Goods sector that increased today were: Hydrogenics Corporation ( HYGS), up 13.9%, Fuelcell Energy ( FCEL), up 10.6%, Capstone Turbine Corporation ( CPST), up 10.3% and TRC Companies ( TRR), up 10.0%.
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Deere & Company manufactures and distributes agriculture and turf equipment, and construction and forestry equipment worldwide. Deere has a market cap of $34.1 billion and is part of the industrial industry. The company has a P/E ratio of 10.8, below the S&P 500 P/E ratio of 17.7. Shares are up 0.8% year to date as of the close of trading on Friday. Currently there are 8 analysts that rate Deere a buy, 1 analyst rates it a sell, and 7 rate it a hold.

TheStreet Ratings rates Deere as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, 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 generally high debt management risk by most measures that we evaluated.

On the negative front, China Valves Technology ( CVVT), down 38.1%, ExOne ( XONE), down 9.7%, Homex Development ( HXM), down 8.1% and Continental Materials Corporation ( CUO), down 8.0% , were all laggards within the industrial goods sector with Masco Corporation ( MAS) 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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