Plum Creek Timber Co Inc (PCL): Today's Featured Industrial Goods 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

Plum Creek Timber ( PCL) pushed the Industrial Goods sector lower today making it today's featured Industrial Goods laggard. The sector as a whole closed the day up 0.5%. By the end of trading, Plum Creek Timber fell $0.61 (-1.3%) to $47.71 on average volume. Throughout the day, 940,200 shares of Plum Creek Timber exchanged hands as compared to its average daily volume of 892,700 shares. The stock ranged in price between $47.40-$48.36 after having opened the day at $48.32 as compared to the previous trading day's close of $48.32. Other companies within the Industrial Goods sector that declined today were: Gafisa ( GFA), down 6.2%, China Advanced Construction Materials Group ( CADC), down 5.0%, India Globalization Capital ( IGC), down 4.6% and Arotech Corporation ( ARTX), down 4.0%.
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Plum Creek Timber Company, Inc. is a publicly owned real estate investment trust (REIT). The trust owns and manages timberlands in the United States. Its products include lumber products, plywood, medium density fiberboard, and related by-products, such as wood chips. Plum Creek Timber has a market cap of $7.7 billion and is part of the real estate industry. The company has a P/E ratio of 33.5, above the S&P 500 P/E ratio of 17.7. Shares are up 8.9% year to date as of the close of trading on Friday. Currently there are 3 analysts that rate Plum Creek Timber a buy, 2 analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Plum Creek Timber as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, Real Goods Solar ( RSOL), down 27.9%, Highpower International ( HPJ), down 26.7%, UQM Technologies ( UQM), down 20.7% and China BAK Battery ( CBAK), down 19.3% , were all gainers within the industrial goods sector with Vulcan Materials Company ( VMC) being today's featured industrial goods sector leader.

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).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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