Companhia De Bebidas Das Americas Ambev (ABV): Today's Featured Consumer Goods Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Companhia de Bebidas das Americas Ambev ( ABV) pushed the Consumer Goods sector lower today making it today's featured Consumer Goods laggard. The sector as a whole closed the day up 0.3%. By the end of trading, Companhia de Bebidas das Americas Ambev fell 37 cents (-1%) to $36.78 on light volume. Throughout the day, 1.2 million shares of Companhia de Bebidas das Americas Ambev exchanged hands as compared to its average daily volume of 2.4 million shares. The stock ranged in price between $36.34-$37 after having opened the day at $37 as compared to the previous trading day's close of $37.15. Other companies within the Consumer Goods sector that declined today were: Enova Systems ( ENA), down 8.3%, Reeds ( REED), down 6.6%, Standard Register Company ( SR), down 5.5%, and Cereplast ( CERP), down 5.1%.

Companhia de Bebidas das Americas Ambev engages in the production, distribution, and sale of beer, draft beer, carbonated soft drinks, malt, and other non-alcoholic and non-carbonated products in the Americas. It also sells bottled water, isotonics, and ready-to-drink teas. Companhia de Bebidas das Americas Ambev has a market cap of $116.66 billion and is part of the food & beverage industry. The company has a P/E ratio of 103.6, above the average food & beverage industry P/E ratio of 25.7 and above the S&P 500 P/E ratio of 17.7. Shares are up 2.9% year to date as of the close of trading on Tuesday. Currently there are three analysts that rate Companhia de Bebidas das Americas Ambev a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates Companhia de Bebidas das Americas Ambev as a buy. The company's strengths can be seen in multiple areas, such as its expanding profit margins, largely solid financial position with reasonable debt levels by most measures, notable return on equity and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the consumer goods sector could consider iShares Dow Jones US Cons Goods ( IYK) while those bearish on the consumer goods sector could consider ProShares Ultra Sht Consumer Goods ( SZK).

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