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

Bunge ( BG) pushed the Food & Beverage industry lower today making it today's featured Food & Beverage laggard. The industry as a whole closed the day up 0.5%. By the end of trading, Bunge fell 95 cents (-1.4%) to $66.23 on average volume. Throughout the day, 1.1 million shares of Bunge exchanged hands as compared to its average daily volume of 1.1 million shares. The stock ranged in price between $66.08-$67.71 after having opened the day at $67.41 as compared to the previous trading day's close of $67.18. Other companies within the Food & Beverage industry that declined today were: Jones Soda Company ( JSDA), down 14.4%, Limoneira ( LMNR), down 4%, S&W Seed Company ( SANW), down 3.7%, and MGP Ingredients ( MGPI), down 3.4%.
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Bunge Limited, through its subsidiaries, engages in the agriculture and food businesses worldwide. Bunge has a market cap of $9.78 billion and is part of the consumer goods sector. The company has a P/E ratio of 13.6, below the average food & beverage industry P/E ratio of 13.7 and below the S&P 500 P/E ratio of 17.7. Shares are up 17.4% year to date as of the close of trading on Tuesday. 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 increase in stock price during the past year. 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 positive front, Chiquita Brands International ( CQB), up 13.6%, Reeds ( REED), up 12.9%, Tianli Agritech ( OINK), up 10.7%, and Smart Balance ( SMBL), up 7.8%, were all gainers within the food & beverage industry with Mead Johnson Nutrition Company ( MJN) being today's featured food & beverage industry leader.

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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