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 up 0.1%. By the end of trading, BRF - Brasil Foods fell 29 cents (-1.6%) to $17.95 on light volume. Throughout the day, 1.1 million shares of BRF - Brasil Foods exchanged hands as compared to its average daily volume of 2.1 million shares. The stock ranged in price between $17.78-$18.04 after having opened the day at $17.80 as compared to the previous trading day's close of $18.24. Other companies within the Food & Beverage industry that declined today were: China Marine Food Group ( CMFO), down 8.1%, Chiquita Brands International ( CQB), down 5.8%, Tianli Agritech ( OINK), down 5.7%, and Primo Water ( PRMW), down 5.4%.
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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 $16.04 billion and is part of the consumer goods sector. The company has a P/E ratio of 37.7, above the S&P 500 P/E ratio of 17.7. Shares are down 5.6% year to date as of the close of trading on Thursday. Currently there are two analysts that rate BRF - Brasil Foods a buy, one analyst rates it a sell, and three 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.

On the positive front, Key Technology ( KTEC), up 12%, Feihe International ( ADY), up 5.5%, Le Gaga Holdings ( GAGA), up 4.9%, and Smart Balance ( SMBL), up 4%, were all gainers within the food & beverage industry with Monster Beverage ( MNST) 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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