General Dynamics (GD): Today's Featured Industrial Goods Winner

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

General Dynamics ( GD) pushed the Industrial Goods sector higher today making it today's featured industrial goods winner. The sector as a whole closed the day down 0.7%. By the end of trading, General Dynamics rose $1.28 (1.5%) to $85.31 on heavy volume. Throughout the day, 2,908,618 shares of General Dynamics exchanged hands as compared to its average daily volume of 1,895,500 shares. The stock ranged in a price between $84.94-$86.60 after having opened the day at $85.02 as compared to the previous trading day's close of $84.03. Other companies within the Industrial Goods sector that increased today were: Clean Diesel Technologies ( CDTI), up 49.2%, Frontline ( FRO), up 15.2%, Asia Pacific Wire & Cable Corp ( APWC), up 10.9% and China Valves Technology ( CVVT), up 8.2%.

General Dynamics Corporation, an aerospace and defense company, provides business aviation; combat vehicles, weapons systems, and munitions; military and commercial shipbuilding; and communications and information technology products and services worldwide. General Dynamics has a market cap of $29.7 billion and is part of the aerospace/defense industry. Shares are up 21.6% year to date as of the close of trading on Tuesday. Currently there are 14 analysts that rate General Dynamics a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates General Dynamics as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the negative front, Zoltek Companies ( ZOLT), down 17.9%, China Advanced Construction Materials Group ( CADC), down 9.1%, China Recycling Energy Corporation ( CREG), down 6.8% and Toll Brothers ( TOL), down 6.2% , were all laggards within the industrial goods sector with Cummins ( CMI) 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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