Ingersoll-Rand PLC (IR): 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

Ingersoll-Rand ( IR) pushed the Industrial Goods sector lower today making it today's featured Industrial Goods laggard. The sector as a whole closed the day down 2.0%. By the end of trading, Ingersoll-Rand fell $1.58 (-2.9%) to $53.46 on average volume. Throughout the day, 2,634,683 shares of Ingersoll-Rand exchanged hands as compared to its average daily volume of 2,089,500 shares. The stock ranged in price between $53.39-$54.64 after having opened the day at $54.53 as compared to the previous trading day's close of $55.04. Other companies within the Industrial Goods sector that declined today were: China Valves Technology ( CVVT), down 25.3%, UQM Technologies ( UQM), down 15.3%, Trex Company ( TREX), down 14.1% and China BAK Battery ( CBAK), down 13.6%.
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Ingersoll-Rand plc engages in the design, manufacture, sale, and service of a diverse portfolio of industrial and commercial products in the United States and internationally. Ingersoll-Rand has a market cap of $16.5 billion and is part of the industrial industry. The company has a P/E ratio of 16.7, below the S&P 500 P/E ratio of 17.7. Shares are up 14.8% year to date as of the close of trading on Friday. Currently there are 3 analysts that rate Ingersoll-Rand a buy, 1 analyst rates it a sell, and 10 rate it a hold.

TheStreet Ratings rates Ingersoll-Rand as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, Broadwind Energy ( BWEN), down 12.1%, TAT Technologies ( TATT), down 9.4%, ZBB Energy Corporation ( ZBB), down 6.1% and Hollysys Automation Technologies ( HOLI), down 3.4%.

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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