Dresser-Rand Group Inc. (DRC): 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.

Dresser-Rand Group ( DRC) 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, Dresser-Rand Group fell $4.60 (-7.8%) to $54.10 on heavy volume. Throughout the day, 7,474,605 shares of Dresser-Rand Group exchanged hands as compared to its average daily volume of 759,700 shares. The stock ranged in price between $51.46-$54.42 after having opened the day at $53.40 as compared to the previous trading day's close of $58.70. Other companies within the Industrial Goods sector that declined today were: MagneGas Corporation ( MNGA), down 12.6%, ARC Group Worldwide ( ARCW), down 8.3%, Gafisa ( GFA), down 7.9% and MFRI ( MFRI), down 7.7%.

2 segments: New parts (generally 50% of sales, 25% of EBIT). Around 13-15 months of typical turnaround. Around 25% market share, says 10K. Aftermarket (generally 50% of sales, 75% of EBIT). Aftermarket sales are tied to installed base, so less cycle sensitive. 3-4 months turnaround. Dresser-Rand Group has a market cap of $4.5 billion and is part of the industrial industry. Shares are down 1.6% year to date as of the close of trading on Friday. Currently there are 5 analysts that rate Dresser-Rand Group a buy, no analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates Dresser-Rand Group as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, revenue growth, notable return on equity and compelling growth in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the positive front, Euro Tech Holdings Company ( CLWT), up 12.7%, Compx International ( CIX), up 11.2%, Matrix Service Company ( MTRX), up 8.3% and Desarrolladora Homex SAB de CV ADR ( HXM), up 8.0% , were all gainers within the industrial goods sector with Ingersoll-Rand ( IR) 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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