Bunge Ltd (BG): Today's Featured Food & Beverage Winner

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.

Bunge ( BG) pushed the Food & Beverage industry higher today making it today's featured food & beverage winner. The industry as a whole closed the day up 0.3%. By the end of trading, Bunge rose $1 (1.6%) to $65.08 on light volume. Throughout the day, 804,524 shares of Bunge exchanged hands as compared to its average daily volume of 1.1 million shares. The stock ranged in a price between $64-$65.24 after having opened the day at $64.46 as compared to the previous trading day's close of $64.08. Other companies within the Food & Beverage industry that increased today were: Coffee Holding Company ( JVA), up 23.5%, Green Mountain Coffee Roasters ( GMCR), up 13.2%, Willamette Valley Vineyards ( WVVI), up 7.3%, and Annie's ( BNNY), up 6.8%.

Bunge Limited, through its subsidiaries, engages in the agriculture and food businesses worldwide. Bunge has a market cap of $9.33 billion and is part of the consumer goods sector. The company has a P/E ratio of 13, below the average food & beverage industry P/E ratio of 13.1 and below the S&P 500 P/E ratio of 17.7. Shares are up 11.7% year to date as of the close of trading on Thursday. Currently there are four analysts that rate Bunge a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates Bunge as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

On the negative front, Kraft Foods ( KFT), down 5.5%, Calavo Growers ( CVGW), down 4.3%, American Lorain ( ALN), down 3.9%, and Reeds ( REED), down 3%, were all laggards within the food & beverage industry with Hershey Company ( HSY) being today's food & beverage industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the food & beverage industry could consider PowerShares Dynamic Food & Beverage ( PBJ) while those bearish on the food & beverage industry could consider PowerShares DB Agriculture Sht ETN ( ADZ).

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