Archer-Daniels Midland Company (ADM): 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.

Archer-Daniels Midland Company ( ADM) pushed the Food & Beverage industry lower today making it today's featured Food & Beverage laggard. The industry as a whole was unchanged today. By the end of trading, Archer-Daniels Midland Company fell 48 cents (-1.7%) to $28.04 on average volume. Throughout the day, 5.3 million shares of Archer-Daniels Midland Company exchanged hands as compared to its average daily volume of 4.7 million shares. The stock ranged in price between $27.78-$28.57 after having opened the day at $28.35 as compared to the previous trading day's close of $28.52. Other companies within the Food & Beverage industry that declined today were: Monster Beverage ( MNST), down 14.2%, Tofutti Brands ( TOF), down 5.6%, Teavana Holdings ( TEA), down 5.4%, and Griffin Land & Nurseries ( GRIF), down 4.1%.
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Archer-Daniels-Midland Company engages in the manufacture and sale of protein meal, vegetable oil, corn sweeteners, flour, biodiesel, ethanol, and other value-added food and feed ingredients. Archer-Daniels Midland Company has a market cap of $19.15 billion and is part of the consumer goods sector. The company has a P/E ratio of 15.8, equal to the average food & beverage industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are down 0.3% year to date as of the close of trading on Friday. Currently there are two analysts that rate Archer-Daniels Midland Company a buy, two analysts rate it a sell, and five rate it a hold.

TheStreet Ratings rates Archer-Daniels Midland Company as a hold. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, largely solid financial position with reasonable debt levels by most measures 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, Crumbs Bake Shop ( CRMB), up 17.8%, Tianli Agritech ( OINK), up 12.3%, Agria Corporation ( GRO), up 6.2%, and SkyPeople Fruit Juice ( SPU), up 5.2%, 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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