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 closed the day up 0.4%. By the end of trading, Archer-Daniels Midland Company fell 28 cents (-1.1%) to $26.43 on average volume. Throughout the day, four million shares of Archer-Daniels Midland Company exchanged hands as compared to its average daily volume of five million shares. The stock ranged in price between $26.43-$26.89 after having opened the day at $26.56 as compared to the previous trading day's close of $26.71. Other companies within the Food & Beverage industry that declined today were: Synutra International ( SYUT), down 11.3%, China Marine Food Group ( CMFO), down 9.1%, Castle Brands Incorporated ( ROX), down 6.5%, and Crumbs Bake Shop ( CRMB), down 5.5%.
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Archer-Daniels-Midland Company manufactures and sells 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 $17.61 billion and is part of the consumer goods sector. The company has a P/E ratio of 18.6, above the S&P 500 P/E ratio of 17.7. Shares are down 6.5% year to date as of the close of trading on Monday. Currently there are four analysts that rate Archer-Daniels Midland Company a buy, two analysts rate it a sell, and three 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 reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. 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, Ralcorp Holdings Incorporated ( RAH), up 26.4%, Monster Beverage ( MNST), up 13.3%, Smart Balance ( SMBL), up 7.5%, and Origin Agritech ( SEED), up 7%, were all gainers within the food & beverage industry with Green Mountain Coffee Roasters ( GMCR) 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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