Mead Johnson Nutrition Company (MJN): 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.

Mead Johnson Nutrition Company ( MJN) pushed the Consumer Goods sector lower today making it today's featured Consumer Goods laggard. The sector as a whole closed the day up 0.2%. By the end of trading, Mead Johnson Nutrition Company fell 74 cents (-1.1%) to $66.83 on light volume. Throughout the day, 1.2 million shares of Mead Johnson Nutrition Company exchanged hands as compared to its average daily volume of 2.2 million shares. The stock ranged in price between $66.60-$67.62 after having opened the day at $67.55 as compared to the previous trading day's close of $67.57. Other companies within the Consumer Goods sector that declined today were: Vera Bradley ( VRA), down 11.7%, Virco Manufacturing Corporation ( VIRC), down 8.7%, Green Mountain Coffee Roasters ( GMCR), down 8.2%, and Deswell Industries ( DSWL), down 8%.
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Mead Johnson Nutrition Company manufactures, distributes, and sells infant formulas, children's nutrition, and other nutritional products. Mead Johnson Nutrition Company has a market cap of $13.73 billion and is part of the food & beverage industry. The company has a P/E ratio of 25, above the S&P 500 P/E ratio of 17.7. Shares are down 1.6% year to date as of the close of trading on Wednesday. Currently there are six analysts that rate Mead Johnson Nutrition Company a buy, no analysts rate it a sell, and five rate it a hold.

TheStreet Ratings rates Mead Johnson Nutrition Company as a buy. The company's strengths can be seen in multiple areas, such as its notable return on equity, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the positive front, Castle Brands Incorporated ( ROX), up 11.1%, Ocean Bio-Chem ( OBCI), up 10.1%, Industrie Natuzzi ( NTZ), up 9.9%, and Movado Group ( MOV), up 8.7%, were all gainers within the consumer goods sector with Sealed Air Corporation ( SEE) 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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