Precision Castparts Corp. (PCP): Today's Featured Industrial Goods Laggard

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.

Precision Castparts ( PCP) pushed the Industrial Goods sector lower today making it today's featured Industrial Goods laggard. The sector as a whole closed the day up 0.3%. By the end of trading, Precision Castparts fell $2.56 (-1.1%) to $230.70 on heavy volume. Throughout the day, 1,654,405 shares of Precision Castparts exchanged hands as compared to its average daily volume of 704,000 shares. The stock ranged in price between $221.10-$238.99 after having opened the day at $230.82 as compared to the previous trading day's close of $233.26. Other companies within the Industrial Goods sector that declined today were: PulteGroup ( PHM), down 10.3%, DR Horton ( DHI), down 8.6%, Ecotality ( ECTY), down 8.3% and M/I Homes ( MHO), down 7.2%.

Precision Castparts Corp. manufactures metal components and products worldwide. Precision Castparts has a market cap of $34.4 billion and is part of the industrial industry. Shares are up 24.5% year to date as of the close of trading on Wednesday. Currently there are 15 analysts that rate Precision Castparts a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Precision Castparts as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, Omega Flex ( OFLX), up 10.5%, FLIR Systems ( FLIR), up 9.7%, TriMas Corporation ( TRS), up 9.5% and Frontline ( FRO), up 8.4% , were all gainers within the industrial goods sector with Ingersoll-Rand ( IR) 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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