Caterpillar Inc (CAT): 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.

Caterpillar ( CAT) pushed the Industrial Goods sector lower today making it today's featured Industrial Goods laggard. The sector as a whole closed the day down 2.1%. By the end of trading, Caterpillar fell $0.86 (-1.0%) to $82.70 on average volume. Throughout the day, 4,993,522 shares of Caterpillar exchanged hands as compared to its average daily volume of 6,009,200 shares. The stock ranged in price between $82.48-$83.54 after having opened the day at $82.88 as compared to the previous trading day's close of $83.56. Other companies within the Industrial Goods sector that declined today were: Astrotech Corporation ( ASTC), down 13.9%, Wowjoint Holdings ( BWOW), down 11.6%, Energy Recovery ( ERII), down 8.4% and ZBB Energy Corporation ( ZBB), down 8.3%.

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 $54.3 billion and is part of the industrial industry. Shares are down 6.4% year to date as of the close of trading on Monday. Currently there are 10 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 and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Ecotality ( ECTY), up 28.8%, Intellicheck Mobilisa ( IDN), up 10.1%, Frontline ( FRO), up 6.9% and IntriCon Corporation ( IIN), up 3.5%.

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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