BRF - Brasil Foods SA (BRFS): 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.

BRF - Brasil Foods ( BRFS) pushed the Food & Beverage industry lower today making it today's featured Food & Beverage laggard. The industry as a whole closed the day down 0.2%. By the end of trading, BRF - Brasil Foods fell 35 cents (-2%) to $17.30 on average volume. Throughout the day, 2.6 million shares of BRF - Brasil Foods exchanged hands as compared to its average daily volume of 2.3 million shares. The stock ranged in price between $16.83-$17.32 after having opened the day at $16.97 as compared to the previous trading day's close of $17.65. Other companies within the Food & Beverage industry that declined today were: Castle Brands Incorporated ( ROX), down 9.4%, Green Mountain Coffee Roasters ( GMCR), down 4.1%, Coca-Cola Hellenic Bottling Company S.A ( CCH), down 3.9%, and Golden ( GLDC), down 2.9%.
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BRF - Brasil Foods S.A., together with its subsidiaries, engages in raising, producing, and slaughtering poultry, pork, and beef in Brazil and internationally. BRF - Brasil Foods has a market cap of $15.33 billion and is part of the consumer goods sector. The company has a P/E ratio of 36, below the average food & beverage industry P/E ratio of 59.2 and above the S&P 500 P/E ratio of 17.7. Shares are down 9.7% year to date as of the close of trading on Thursday. Currently there are two analysts that rate BRF - Brasil Foods a buy, no analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates BRF - Brasil Foods as a hold. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.

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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