Coca-Cola Enterprises Inc (CCE): Today's Featured Consumer Goods 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.

Coca-Cola ( CCE) pushed the Consumer Goods sector lower today making it today's featured Consumer Goods laggard. The sector as a whole closed the day up 0.5%. By the end of trading, Coca-Cola fell 50 cents (-1.6%) to $30.79 on heavy volume. Throughout the day, 3.2 million shares of Coca-Cola exchanged hands as compared to its average daily volume of 2.1 million shares. The stock ranged in price between $30.45-$31.04 after having opened the day at $30.45 as compared to the previous trading day's close of $31.29. Other companies within the Consumer Goods sector that declined today were: Cereplast ( CERP), down 11.8%, Quantum Fuel Systems Technologies Worldwide ( QTWW), down 8%, Appliance Recycling Centers ( ARCI), down 8%, and PAR Technology ( PAR), down 5.6%.
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Coca-Cola Enterprises, Inc. produces, distributes, and markets nonalcoholic beverages. It provides still and sparkling waters, juices, sports drinks, juice drinks, coffee-based beverages, and teas. Coca-Cola Enterprises, Inc. Coca-Cola has a market cap of $9.11 billion and is part of the food & beverage industry. The company has a P/E ratio of 14, below the S&P 500 P/E ratio of 17.7. Shares are up 23.1% year to date as of the close of trading on Friday. Currently there are six analysts that rate Coca-Cola a buy, no analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates Coca-Cola as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, notable return on equity, attractive valuation levels, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Primo Water ( PRMW), up 54%, ATC Venture Group ( ATC), up 22.9%, Generac Holdings ( GNRC), up 12.4%, and Quiksilver ( ZQK), up 10.6%, were all gainers within the consumer goods sector with Fossil ( FOSL) being today's featured consumer goods sector leader.

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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