Kellogg Company (K): 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.

Kellogg Company ( K) pushed the Consumer Goods sector lower today making it today's featured Consumer Goods laggard. The sector as a whole closed the day up 1%. By the end of trading, Kellogg Company fell 63 cents (-1.2%) to $50.19 on heavy volume. Throughout the day, 2.9 million shares of Kellogg Company exchanged hands as compared to its average daily volume of 1.9 million shares. The stock ranged in price between $49.93-$50.77 after having opened the day at $50.77 as compared to the previous trading day's close of $50.82. Other companies within the Consumer Goods sector that declined today were: Swift Transportation ( SWFT), down 8.1%, Seneca Foods ( SENEB), down 7.4%, ATC Venture Group ( ATC), down 7.2%, and Coffee Holding Company ( JVA), down 6.9%.
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Kellogg Company, together with its subsidiaries, manufactures and markets ready-to-eat cereal and convenience food products primarily in North America, Europe, Latin America, and the Asia Pacific. Kellogg Company has a market cap of $18.02 billion and is part of the food & beverage industry. The company has a P/E ratio of 15.3, equal to the average food & beverage industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 0.5% year to date as of the close of trading on Thursday. Currently there are three analysts that rate Kellogg Company a buy, one analyst rates it a sell, and 15 rate it a hold.

TheStreet Ratings rates Kellogg Company as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Virco Manufacturing Corporation ( VIRC), up 77.7%, Furniture Brands International ( FBN), up 37.4%, Tianli Agritech ( OINK), up 15.4%, and Kid Brands ( KID), up 13.6%, were all gainers within the consumer goods sector with BorgWarner ( BWA) being today's featured consumer goods sector leader.

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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