Cummins Inc (CMI): Today's Featured Industrial 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 industry higher today making it today's featured industrial winner. The industry as a whole closed the day up 0.7%. By the end of trading, Cummins rose $1.65 (1.3%) to $132.63 on light volume. Throughout the day, 702,832 shares of Cummins exchanged hands as compared to its average daily volume of 1,466,000 shares. The stock ranged in a price between $131.00-$132.79 after having opened the day at $131.51 as compared to the previous trading day's close of $130.98. Other companies within the Industrial industry that increased today were: Sifco Industries ( SIF), up 10.1%, China Ming Yang Wind Power Group ( MY), up 9.0%, Marine Products Corporation ( MPX), up 4.5% and Powell Industries ( POWL), up 4.4%.

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 $24.5 billion and is part of the industrial goods sector. The company has a P/E ratio of 17.3, below the S&P 500 P/E ratio of 17.7. Shares are up 20.7% year to date as of the close of trading on Tuesday. Currently there are 7 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, increase in net income and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the negative front, Altair Nanotechnologies ( ALTI), down 5.7%, Cleantech Solutions International ( CLNT), down 3.6%, Global Brass & Copper Holdings ( BRSS), down 3.6% and Broadwind Energy ( BWEN), down 2.8% , were all laggards within the industrial industry with JinkoSolar ( JKS) being today's industrial industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the industrial industry could consider SPDR Dow Jones Industrial Average ( DIA) while those bearish on the industrial industry could consider ProShares UltraShort Industrials ( SIJ).

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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