Cummins Inc (CMI): 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.

Cummins ( CMI) pushed the Industrial Goods sector higher today making it today's featured industrial goods winner. The sector as a whole closed the day up 1.8%. By the end of trading, Cummins rose $3.13 (2.5%) to $126.56 on average volume. Throughout the day, 1,847,652 shares of Cummins exchanged hands as compared to its average daily volume of 1,692,600 shares. The stock ranged in a price between $124.14-$127.59 after having opened the day at $124.64 as compared to the previous trading day's close of $123.43. Other companies within the Industrial Goods sector that increased today were: Industrial Services of America ( IDSA), up 17.0%, Argan ( AGX), up 10.9%, Allied Motion Technologies ( AMOT), up 10.7% and Erickson Air-Crane ( EAC), up 10.6%.

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 $23.4 billion and is part of the industrial industry. Shares are up 13.9% year to date as of the close of trading on Wednesday. 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.

On the negative front, Ecotality ( ECTY), down 8.1%, Frontline ( FRO), down 5.2%, Ultralife Batteries ( ULBI), down 3.7% and Arotech Corporation ( ARTX), 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).

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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