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 0.8%. By the end of trading, Cummins rose $2.70 (2.2%) to $126.40 on heavy volume. Throughout the day, 2,488,975 shares of Cummins exchanged hands as compared to its average daily volume of 1,296,300 shares. The stock ranged in a price between $122.64-$126.70 after having opened the day at $123.75 as compared to the previous trading day's close of $123.70. Other companies within the Industrial Goods sector that increased today were: Headwaters ( HW), up 20.2%, CVD Equipment Corporation ( CVV), up 13.5%, Xylem ( XYL), up 10.6% and Desarrolladora Homex SAB de CV ADR ( HXM), up 8.7%.

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 $23.8 billion and is part of the industrial industry. The company has a P/E ratio of 16.8, below the S&P 500 P/E ratio of 17.7. Shares are down 12.2% year to date as of the close of trading on Monday. Currently there are 8 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, increase in stock price during the past year, 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, China Ming Yang Wind Power Group ( MY), down 7.8%, LGL Group ( LGL), down 6.2%, Air Industries Group ( AIRI), down 5.6% and Compx International ( CIX), down 4.7%.

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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