Caterpillar Inc (CAT): 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

Caterpillar ( CAT) pushed the Industrial industry lower today making it today's featured Industrial laggard. The industry as a whole closed the day down 1.1%. By the end of trading, Caterpillar fell $1.50 (-1.8%) to $84.42 on average volume. Throughout the day, 7,269,729 shares of Caterpillar exchanged hands as compared to its average daily volume of 7,113,400 shares. The stock ranged in price between $84.23-$85.73 after having opened the day at $85.47 as compared to the previous trading day's close of $85.92. Other companies within the Industrial industry that declined today were: Exide Technologies ( XIDE), down 15.1%, Cleantech Solutions International ( CLNT), down 8.9%, Mueller Water Products ( MWA), down 8.8% and Intellicheck Mobilisa ( IDN), down 7.0%.
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Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. Caterpillar has a market cap of $56.6 billion and is part of the industrial goods sector. The company has a P/E ratio of 11.6, below the S&P 500 P/E ratio of 17.7. Shares are down 4.1% year to date as of the close of trading on Tuesday. Currently there are 12 analysts that rate Caterpillar a buy, no analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates Caterpillar as a buy. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, China BAK Battery ( CBAK), down 46.4%, Hallwood Group ( HWG), down 19.9%, China Valves Technology ( CVVT), down 14.3% and UQM Technologies ( UQM), down 13.0%.

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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