Campbell Soup Co (CPB): 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.

Campbell Soup ( CPB) 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, Campbell Soup fell 74 cents (-2%) to $36.21 on heavy volume. Throughout the day, 4.7 million shares of Campbell Soup exchanged hands as compared to its average daily volume of two million shares. The stock ranged in price between $35.83-$36.79 after having opened the day at $36.54 as compared to the previous trading day's close of $36.95. Other companies within the Food & Beverage industry that declined today were: Agria Corporation ( GRO), down 6.1%, China New Borun Corporation ( BORN), down 4.8%, Teavana Holdings ( TEA), down 4.5%, and Hormel Foods Corporation ( HRL), down 4%.
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Campbell Soup Company, together with its subsidiaries, engages in the manufacture and marketing of branded convenience food products worldwide. Campbell Soup has a market cap of $11.49 billion and is part of the consumer goods sector. The company has a P/E ratio of 15.2, below the S&P 500 P/E ratio of 17.7. Shares are up 11.2% year to date as of the close of trading on Monday. Currently there is one analyst that rates Campbell Soup a buy, three analysts rate it a sell, and 14 rate it a hold.

TheStreet Ratings rates Campbell Soup as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, reasonable valuation levels, increase in stock price during the past year and increase in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the positive front, SkyPeople Fruit Juice ( SPU), up 7.3%, Castle Brands Incorporated ( ROX), up 7.1%, Tianli Agritech ( OINK), up 6.1%, and S&W Seed Company ( SANW), up 4.2%, were all gainers within the food & beverage industry with Archer-Daniels Midland Company ( ADM) 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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