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.

The Food & Beverage industry as a whole closed the day down 0.1% versus the S&P 500, which was down 0.1%. Laggards within the Food & Beverage industry included

Leading Brands

(

LBIX

), down 1.9%,

Crystal Rock Holdings

(

CRVP

), down 2.2%,

American Lorain

(

ALN

), down 1.8%,

RiceBran Technologies

(

RIBT

), down 3.6% and

Brown-Forman

(

BF.A

), down 1.7%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today:

Diamond Foods

(

DMND

) is one of the companies that pushed the Food & Beverage industry lower today. Diamond Foods was down $0.48 (1.7%) to $28.32 on average volume. Throughout the day, 300,919 shares of Diamond Foods exchanged hands as compared to its average daily volume of 387,900 shares. The stock ranged in price between $28.01-$29.41 after having opened the day at $29.40 as compared to the previous trading day's close of $28.80.

Diamond Foods, Inc., a packaged food company, processes, markets, and distributes snack products and nuts. The company's Snacks segment offers microwave popcorn products and potato chips under the Kettle and Pop Secret brands. Diamond Foods has a market cap of $909.2 million and is part of the consumer goods sector. Shares are up 11.5% year-to-date as of the close of trading on Friday. Currently there are 3 analysts who rate Diamond Foods a buy, no analysts rate it a sell, and 1 rates it a hold.

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

TheStreet Ratings rates

Diamond Foods

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, poor profit margins and weak operating cash flow.

Highlights from TheStreet Ratings analysis on DMND go as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Food Products industry. The net income has significantly decreased by 577.9% when compared to the same quarter one year ago, falling from -$15.58 million to -$105.63 million.
  • The debt-to-equity ratio is very high at 2.26 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. To add to this, DMND has a quick ratio of 0.55, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Food Products industry and the overall market, DIAMOND FOODS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for DIAMOND FOODS INC is currently lower than what is desirable, coming in at 27.74%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -55.33% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$163.68 million or 931.91% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

You can view the full analysis from the report here:

Diamond Foods Ratings Report

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

At the close,

American Lorain

(

ALN

) was down $0.02 (1.8%) to $1.12 on light volume. Throughout the day, 7,719 shares of American Lorain exchanged hands as compared to its average daily volume of 66,000 shares. The stock ranged in price between $1.12-$1.15 after having opened the day at $1.15 as compared to the previous trading day's close of $1.14.

American Lorain Corporation, through its subsidiaries, develops, manufactures, and sells various food products in the People's Republic of China. It provides chestnut products, including aerated open-bottom chestnuts, sweetheart chestnuts, chestnuts in syrup, and golden chestnut kernels. American Lorain has a market cap of $39.8 million and is part of the consumer goods sector. Shares are up 44.3% year-to-date as of the close of trading on Friday.

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

TheStreet Ratings rates

American Lorain

as a

buy

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

Highlights from TheStreet Ratings analysis on ALN go as follows:

  • The current debt-to-equity ratio, 0.51, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, ALN has a quick ratio of 1.68, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Net operating cash flow has significantly increased by 614.58% to $7.02 million when compared to the same quarter last year. In addition, AMERICAN LORAIN CORP has also vastly surpassed the industry average cash flow growth rate of -17.47%.
  • ALN, with its decline in revenue, underperformed when compared the industry average of 3.5%. Since the same quarter one year prior, revenues slightly dropped by 9.0%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • In its most recent trading session, ALN has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.

You can view the full analysis from the report here:

American Lorain Ratings Report

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

Leading Brands

(

LBIX

) was another company that pushed the Food & Beverage industry lower today. Leading Brands was down $0.08 (1.9%) to $4.15 on light volume. Throughout the day, 500 shares of Leading Brands exchanged hands as compared to its average daily volume of 1,900 shares. The stock ranged in price between $4.15-$4.15 after having opened the day at $4.15 as compared to the previous trading day's close of $4.23.

Leading Brands, Inc., together with its subsidiaries, is engaged in the development, production, marketing, and distribution of beverages in Canada, the western United States, and Asia. Leading Brands has a market cap of $12.2 million and is part of the consumer goods sector. Shares are up 8.0% year-to-date as of the close of trading on Friday.

TheStreet Ratings rates

Leading Brands

as a

hold

. The company's strengths can be seen in multiple areas, such as its expanding profit margins and solid stock price performance. However, as a counter to these strengths, we find that the growth in the company's net income has been quite unimpressive.

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Highlights from TheStreet Ratings analysis on LBIX go as follows:

  • 39.62% is the gross profit margin for LEADING BRANDS INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -1.75% is in-line with the industry average.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Looking ahead, our view is that this company's fundamentals will not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.
  • LEADING BRANDS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, LEADING BRANDS INC increased its bottom line by earning $0.36 versus $0.15 in the prior year.
  • LBIX, with its decline in revenue, underperformed when compared the industry average of 2.5%. Since the same quarter one year prior, revenues slightly dropped by 7.8%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Beverages industry. The net income has significantly decreased by 48.6% when compared to the same quarter one year ago, falling from -$0.04 million to -$0.06 million.

You can view the full analysis from the report here:

Leading Brands Ratings Report

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