Companhia De Bebidas Das Americas Ambev (ABV): Today's Featured Food & Beverage Winner

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.

Companhia de Bebidas das Americas Ambev ( ABV) pushed the Food & Beverage industry higher today making it today's featured food & beverage winner. The industry as a whole closed the day up 0.6%. By the end of trading, Companhia de Bebidas das Americas Ambev rose 47 cents (1.1%) to $42.66 on light volume. Throughout the day, 1.3 million shares of Companhia de Bebidas das Americas Ambev exchanged hands as compared to its average daily volume of 1.9 million shares. The stock ranged in a price between $42.07-$42.70 after having opened the day at $42.11 as compared to the previous trading day's close of $42.19. Other companies within the Food & Beverage industry that increased today were: Crumbs Bake Shop ( CRMB), up 8.1%, John B. Sanfilippo & Son ( JBSS), up 5.3%, Tianli Agritech ( OINK), up 5.3%, and Green Mountain Coffee Roasters ( GMCR), up 5.1%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Companhia de Bebidas das Americas Ambev engages in the production, distribution, and sale of beer, draft beer, carbonated soft drinks, malt, and other non-alcoholic and non-carbonated products in the Americas. It also sells bottled water, isotonics, and ready-to-drink teas. Companhia de Bebidas das Americas Ambev has a market cap of $131.67 billion and is part of the consumer goods sector. The company has a P/E ratio of 103.6, above the S&P 500 P/E ratio of 17.7. Shares are up 16.7% year to date as of the close of trading on Monday. Currently there are two analysts that rate Companhia de Bebidas das Americas Ambev a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates Companhia de Bebidas das Americas Ambev as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

On the negative front, Primo Water ( PRMW), down 4.7%, Farmer Bros ( FARM), down 2.6%, Agria Corporation ( GRO), down 2.5%, and Origin Agritech ( SEED), down 2.1%, were all laggards within the food & beverage industry with Hain Celestial Group ( HAIN) being today's food & beverage industry laggard.

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).

HOLIDAY SPECIAL: Let Jim Cramer show you every trade he is making in his $2.5 Million portfolio. Join now for 14-days FREE. Sign up today to get e-mail alerts before every trade.
null

If you liked this article you might like

McDonald's Joins 5 Other Mega Brands In Ditching the Olympics

Why Baxter International Offers Great Reward for Minimal Risk

5 Sin Stocks to Protect Your Portfolio

4 Stocks Going Ex-Dividend Monday: LAND, AFT, CINF, ABV

Emerging Markets Funds That Stayed Afloat