Dow Today: International Business Machines (IBM) Leads The Day Higher, UnitedHealth Group (UNH) Lags

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.

The Dow Jones Industrial Average ( ^DJI) closed up 101 points (+0.7%) at 14,760. During the day, 612.5 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 609.1 million. The NYSE advances/declines ratio closed at 2,469 issues advancing vs. 591 declining with 74 unchanged.
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The Dow component that led the way higher today was International Business Machines (NYSE: IBM), which sported a $1.44 gain (+0.7%) bringing the stock to $194.98. This single gain is lifting the Dow Jones Industrial Average by 10.9 points or roughly accounting for 10.8% of the Dow's overall gain. Volume for International Business Machines ended the day at 3.8 million shares traded vs. an average daily trading volume of 4.2 million shares.

International Business Machines has a market cap of $216.72 billion and is part of the technology sector and computer software & services industry. Shares are up 1% year to date as of Monday's close. The stock's dividend yield sits at 1.9%.

International Business Machines Corporation provides information technology (IT) products and services worldwide. The company operates in five segments: Global Technology Services, Global Business Services, Software, Systems and Technology, and Global Financing. The company has a P/E ratio of 13.5, below the S&P 500 P/E ratio of 17.7.

TheStreet Ratings rates International Business Machines as a buy. The company's strengths can be seen in multiple areas, such as its notable return on equity, growth in earnings per share and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Holding the Dow back today was UnitedHealth Group (NYSE: UNH), which lagged the broader Dow index with a 92-cent decline (-1.4%) bringing the stock to $63.73. Volume for UnitedHealth Group ended the day at 4.9 million shares traded vs. an average daily trading volume of six million shares.

UnitedHealth Group has a market cap of $65.18 billion and is part of the health care sector and health services industry. Shares are up 19.2% year to date as of Monday's close. The stock's dividend yield sits at 1.8%.

UnitedHealth Group Incorporated operates as a diversified health and well-being company in the United States. The company has a P/E ratio of 12.5, below the S&P 500 P/E ratio of 17.7.

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

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