5 Industrial Goods Stocks Dragging The Sector Down

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.

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 57 points (-0.4%) at 15,601 as of Monday, Aug. 5, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,233 issues advancing vs. 1,686 declining with 120 unchanged.

The Industrial Goods sector currently sits up 0.4% versus the S&P 500, which is down 0.2%. On the negative front, top decliners within the sector include PulteGroup ( PHM), down 2.7%, DR Horton ( DHI), down 2.4%, Fastenal Company ( FAST), down 1.8%, Sherwin-Williams Company ( SHW), down 1.4% and CNH Global ( CNH), down 1.0%. A company within the sector that increased today was Weyerhaeuser ( WY), up 0.8%.

TheStreet would like to highlight 5 stocks pushing the sector lower today:

5. Cummins ( CMI) is one of the companies pushing the Industrial Goods sector lower today. As of noon trading, Cummins is down $0.73 (-0.6%) to $122.32 on light volume. Thus far, 411,764 shares of Cummins exchanged hands as compared to its average daily volume of 1.7 million shares. The stock has ranged in price between $121.81-$123.05 after having opened the day at $122.88 as compared to the previous trading day's close of $123.05.

Cummins Inc. designs, manufactures, distributes, and services diesel and natural gas engines, and engine-related component products. It operates in four segments: Engine, Components, Power Generation, and Distribution. Cummins has a market cap of $23.3 billion and is part of the industrial industry. Shares are up 13.6% year to date as of the close of trading on Friday. Currently there are 9 analysts that rate Cummins a buy, no analysts rate it a sell, and 5 rate it a hold.

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

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4. As of noon trading, Deere ( DE) is down $0.42 (-0.5%) to $82.98 on average volume. Thus far, 1.8 million shares of Deere exchanged hands as compared to its average daily volume of 3.3 million shares. The stock has ranged in price between $82.67-$83.48 after having opened the day at $83.40 as compared to the previous trading day's close of $83.40.

Deere & Company manufactures and distributes agriculture and turf equipment, and construction and forestry equipment worldwide. Deere has a market cap of $32.2 billion and is part of the industrial industry. Shares are down 3.9% year to date as of the close of trading on Friday. Currently there are 4 analysts that rate Deere a buy, 3 analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates Deere as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Get the full Deere Ratings Report now.

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

3. As of noon trading, United Technologies ( UTX) is down $0.95 (-0.9%) to $106.82 on light volume. Thus far, 994,713 shares of United Technologies exchanged hands as compared to its average daily volume of 3.3 million shares. The stock has ranged in price between $106.80-$107.38 after having opened the day at $107.34 as compared to the previous trading day's close of $107.77.

United Technologies Corporation provides technology products and services to the building systems and aerospace industries worldwide. United Technologies has a market cap of $98.3 billion and is part of the industrial industry. Shares are up 31.4% year to date as of the close of trading on Friday. Currently there are 15 analysts that rate United Technologies a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates United Technologies as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, compelling growth in net income, growth in earnings per share and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full United Technologies Ratings Report now.

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

2. As of noon trading, Caterpillar ( CAT) is down $0.54 (-0.6%) to $83.76 on light volume. Thus far, 1.7 million shares of Caterpillar exchanged hands as compared to its average daily volume of 6.3 million shares. The stock has ranged in price between $83.61-$84.29 after having opened the day at $84.11 as compared to the previous trading day's close of $84.30.

Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. Caterpillar has a market cap of $55.5 billion and is part of the industrial industry. Shares are down 5.9% year to date as of the close of trading on Friday. Currently there are 11 analysts that rate Caterpillar a buy, no analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates Caterpillar as a buy. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, notable return on equity and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Caterpillar Ratings Report now.

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

1. As of noon trading, Boeing ( BA) is down $0.59 (-0.6%) to $107.31 on light volume. Thus far, 1.5 million shares of Boeing exchanged hands as compared to its average daily volume of 5.7 million shares. The stock has ranged in price between $107.14-$107.80 after having opened the day at $107.17 as compared to the previous trading day's close of $107.90.

The Boeing Company, together with its subsidiaries, engages in the design, development, manufacture, sale, and support of commercial jetliners, military aircraft, satellites, missile defense, human space flight, and launch systems and services worldwide. Boeing has a market cap of $80.5 billion and is part of the aerospace/defense industry. Shares are up 43.2% year to date as of the close of trading on Friday. Currently there are 17 analysts that rate Boeing a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Boeing as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, solid stock price performance, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Boeing Ratings Report now.

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

If you are interested in one of these 4 stocks, 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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