3 Stocks Dragging The Industrial Goods Sector Downward

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.

Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 67 points (-0.4%) at 17,031 as of Tuesday, Sept. 2, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,211 issues advancing vs. 1,801 declining with 159 unchanged.

The Industrial Goods sector currently is unchanged today versus the S&P 500, which is down 0.3%. On the negative front, top decliners within the sector include Martin Marietta Materials ( MLM), down 1.4%, and Royal Philips ( PHG), down 0.5%. Top gainers within the sector include AerCap Holdings ( AER), up 2.6%, Nidec ( NJ), up 2.4%, Quanta Services ( PWR), up 1.5%, Tenaris ( TS), up 0.8% and ABB ( ABB), up 0.7%.

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

3. Cummins ( CMI) is one of the companies pushing the Industrial Goods sector lower today. As of noon trading, Cummins is down $0.78 (-0.5%) to $144.33 on average volume. Thus far, 623,970 shares of Cummins exchanged hands as compared to its average daily volume of 1.3 million shares. The stock has ranged in price between $144.29-$145.63 after having opened the day at $145.21 as compared to the previous trading day's close of $145.11.

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 $26.7 billion and is part of the industrial industry. Shares are up 2.9% year-to-date as of the close of trading on Friday. Currently there are 11 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, reasonable valuation levels and growth in earnings per share. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Cummins 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, Precision Castparts ( PCP) is down $2.50 (-1.0%) to $241.56 on average volume. Thus far, 498,081 shares of Precision Castparts exchanged hands as compared to its average daily volume of 804,100 shares. The stock has ranged in price between $241.38-$244.69 after having opened the day at $243.89 as compared to the previous trading day's close of $244.06.

Precision Castparts Corp. manufactures and sells metal components and products worldwide. It operates in three segments: Investment Cast Products, Forged Products, and Airframe Products. Precision Castparts has a market cap of $35.0 billion and is part of the industrial industry. Shares are down 9.4% year-to-date as of the close of trading on Friday. Currently there are 13 analysts that rate Precision Castparts a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Precision Castparts 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, impressive record of earnings per share growth, expanding profit margins 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 Precision Castparts 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, General Electric ( GE) is down $0.14 (-0.5%) to $25.84 on average volume. Thus far, 12.7 million shares of General Electric exchanged hands as compared to its average daily volume of 28.7 million shares. The stock has ranged in price between $25.83-$26.03 after having opened the day at $25.89 as compared to the previous trading day's close of $25.98.

General Electric Company operates as an infrastructure and financial services company worldwide. General Electric has a market cap of $260.7 billion and is part of the industrial industry. Shares are down 7.3% year-to-date as of the close of trading on Friday. Currently there are 6 analysts that rate General Electric a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates General Electric as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, increase in stock price during the past year and expanding profit margins. 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 General Electric 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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