Bunge Ltd (BG): Today's Featured Consumer Goods 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 Consumer Goods sector higher today making it today's featured consumer goods winner. The sector as a whole closed the day up 0.8%. By the end of trading, Bunge rose 74 cents (1.1%) to $68.52 on light volume. Throughout the day, 729,133 shares of Bunge exchanged hands as compared to its average daily volume of 1.1 million shares. The stock ranged in a price between $67.90-$68.74 after having opened the day at $68.47 as compared to the previous trading day's close of $67.78. Other companies within the Consumer Goods sector that increased today were: House of Taylor Jewelry Incorporated ( HOTJ), up 175%, Crumbs Bake Shop ( CRMB), up 13.1%, China Shengda Packaging Group ( CPGI), up 10.2%, and Forward Industries ( FORD), up 9.6%.
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Bunge Limited, through its subsidiaries, engages in the agriculture and food businesses worldwide. Bunge has a market cap of $10.01 billion and is part of the food & beverage industry. The company has a P/E ratio of 13.9, below the average food & beverage industry P/E ratio of 14 and below the S&P 500 P/E ratio of 17.7. Shares are up 18.5% year to date as of the close of trading on Wednesday. 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 negative front, ATC Venture Group ( ATC), down 13.2%, Hyster-Yale Materials Handling ( HY), down 8.8%, Standard Register Company ( SR), down 6.8%, and Pilgrims Pride ( PPC), down 6.7%, were all laggards within the consumer goods sector with Hain Celestial Group ( HAIN) being today's consumer goods sector laggard.

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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