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 1.1%. By the end of trading, Cummins rose $2.50 (1.9%) to $135.52 on heavy volume. Throughout the day, 2,129,546 shares of Cummins exchanged hands as compared to its average daily volume of 1,360,100 shares. The stock ranged in a price between $132.90-$136.45 after having opened the day at $133.12 as compared to the previous trading day's close of $133.02. Other companies within the Industrial Goods sector that increased today were: Ocean Power Technologies ( OPTT), up 53.6%, ZBB Energy Corporation ( ZBB), up 28.3%, Innovative Solutions and Support ( ISSC), up 21.9% and China BAK Battery ( CBAK), up 15.4%.

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 $25.2 billion and is part of the industrial industry. Shares are down 4.7% year to date as of the close of trading on Monday. Currently there are 10 analysts that rate Cummins a buy, no analysts rate it a sell, and 4 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 net income, good cash flow from operations and increase in stock price during the past year. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

On the negative front, Desarrolladora Homex SAB de CV ADR ( HXM), down 14.8%, Frontline ( FRO), down 7.5%, PMFG ( PMFG), down 5.5% and Capstone Turbine Corporation ( CPST), down 5.5% , were all laggards within the industrial goods sector with Ryland Group ( RYL) being today's industrial goods sector laggard.

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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