3 Industrial Goods Stocks Dragging The Sector Down

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.

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 37 points (-0.2%) at 16,662 as of Friday, May 30, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,201 issues advancing vs. 1,742 declining with 169 unchanged.

The Industrial Goods sector currently sits down 0.5% versus the S&P 500, which is down 0.1%. On the negative front, top decliners within the sector include Chart Industries ( GTLS), down 6.2%, MasTec ( MTZ), down 6.1%, 3D Systems ( DDD), down 2.5%, Nidec ( NJ), down 2.4% and Chicago Bridge & Iron Company ( CBI), down 1.6%.

TheStreet would like to highlight 3 stocks pushing the sector lower today:

3. Eaton ( ETN) is one of the companies pushing the Industrial Goods sector lower today. As of noon trading, Eaton is down $0.69 (-0.9%) to $73.34 on light volume. Thus far, 962,822 shares of Eaton exchanged hands as compared to its average daily volume of 2.7 million shares. The stock has ranged in price between $73.28-$73.94 after having opened the day at $73.73 as compared to the previous trading day's close of $74.03.

Eaton Corporation plc operates as a power management company worldwide. Eaton has a market cap of $35.3 billion and is part of the industrial industry. Shares are down 2.8% year-to-date as of the close of trading on Thursday. Currently there are 11 analysts that rate Eaton a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Eaton as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, reasonable valuation levels and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Eaton Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

2. As of noon trading, General Dynamics ( GD) is down $0.83 (-0.7%) to $117.14 on light volume. Thus far, 764,218 shares of General Dynamics exchanged hands as compared to its average daily volume of 2.1 million shares. The stock has ranged in price between $116.97-$117.85 after having opened the day at $117.85 as compared to the previous trading day's close of $117.97.

General Dynamics Corporation operates as aerospace and defense company worldwide. General Dynamics has a market cap of $40.3 billion and is part of the aerospace/defense industry. Shares are up 23.5% year-to-date as of the close of trading on Thursday. Currently there are 12 analysts that rate General Dynamics a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates General Dynamics as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full General Dynamics Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

1. As of noon trading, Caterpillar ( CAT) is down $1.98 (-1.9%) to $101.62 on light volume. Thus far, 1.8 million shares of Caterpillar exchanged hands as compared to its average daily volume of 5.0 million shares. The stock has ranged in price between $101.55-$102.98 after having opened the day at $102.90 as compared to the previous trading day's close of $103.60.

Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. Caterpillar has a market cap of $64.4 billion and is part of the industrial industry. Shares are up 14.1% year-to-date as of the close of trading on Thursday. Currently there are 7 analysts that rate Caterpillar a buy, no analysts rate it a sell, and 12 rate it a hold.

TheStreet Ratings rates Caterpillar as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, solid stock price performance, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Get the full Caterpillar Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

If you are interested in one of these 3 stocks, 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).

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