Valmont Industries Inc. (VMI): 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.

Valmont Industries ( VMI) pushed the Industrial Goods sector lower today making it today's featured Industrial Goods laggard. The sector as a whole closed the day up 0.6%. By the end of trading, Valmont Industries fell $2.56 (-1.8%) to $143.98 on average volume. Throughout the day, 290,686 shares of Valmont Industries exchanged hands as compared to its average daily volume of 233,600 shares. The stock ranged in price between $142.03-$145.50 after having opened the day at $145.49 as compared to the previous trading day's close of $146.54. Other companies within the Industrial Goods sector that declined today were: Ecotality ( ECTY), down 10.1%, MagneGas Corporation ( MNGA), down 9.6%, Jewett-Cameron Trading Company ( JCTCF), down 6.6% and CVD Equipment Corporation ( CVV), down 6.4%.

Valmont Industries, Inc. produces and sells fabricated metal products in the United States, Australia, China, France, and internationally. It operates in four segments: Engineered Infrastructure Products, Utility Support Structures, Coatings, and Irrigation. Valmont Industries has a market cap of $4.0 billion and is part of the industrial industry. Shares are up 8.2% year to date as of the close of trading on Wednesday. Currently there are 5 analysts that rate Valmont Industries a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Valmont Industries 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, attractive valuation levels, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, Wowjoint Holdings ( BWOW), up 28.0%, Perma-Fix Environmental Services ( PESI), up 18.8%, India Globalization Capital ( IGC), up 16.3% and Zoltek Companies ( ZOLT), up 12.7% , were all gainers within the industrial goods sector with Raytheon Company ( RTN) 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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