J.M. Smucker Co. (SJM): 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.

J.M. Smucker ( SJM) pushed the Food & Beverage industry lower today making it today's featured Food & Beverage laggard. The industry as a whole closed the day up 0.1%. By the end of trading, J.M. Smucker fell $1.02 (-1.2%) to $86.45 on heavy volume. Throughout the day, one million shares of J.M. Smucker exchanged hands as compared to its average daily volume of 651,200 shares. The stock ranged in price between $86.12-$87.44 after having opened the day at $87.05 as compared to the previous trading day's close of $87.47. Other companies within the Food & Beverage industry that declined today were: Green Mountain Coffee Roasters ( GMCR), down 6.4%, Castle Brands Incorporated ( ROX), down 5.5%, Griffin Land & Nurseries ( GRIF), down 4.3%, and Pilgrims Pride ( PPC), down 4.2%.
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The J. M. Smucker Company engages in manufacturing and marketing branded food products primarily in the United States, Canada, and internationally. J.M. Smucker has a market cap of $9.56 billion and is part of the consumer goods sector. The company has a P/E ratio of 21.4, equal to the average food & beverage industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are up 11.9% year to date as of the close of trading on Thursday. Currently there are seven analysts that rate J.M. Smucker a buy, no analysts rate it a sell, and eight rate it a hold.

TheStreet Ratings rates J.M. Smucker as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, growth in earnings per share, increase in stock price during the past year and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, Willamette Valley Vineyards ( WVVI), up 5.7%, Coca-Cola Hellenic Bottling Company S.A ( CCH), up 4.8%, Constellation Brands ( STZ), up 4.3%, and Constellation Brands ( STZ.B), up 4.3%, were all gainers within the food & beverage industry with BRF - Brasil Foods ( BRFS) 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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