Bunge Ltd (BG): 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.

Bunge ( BG) pushed the Food & Beverage industry lower today making it today's featured Food & Beverage laggard. The industry as a whole closed the day down 0.5%. By the end of trading, Bunge fell $7.26 (-9.2%) to $72.12 on heavy volume. Throughout the day, 5.8 million shares of Bunge exchanged hands as compared to its average daily volume of 781,600 shares. The stock ranged in price between $71.26-$75.48 after having opened the day at $74.44 as compared to the previous trading day's close of $79.38. Other companies within the Food & Beverage industry that declined today were: Central European Distribution ( CEDC), down 8.9%, China New Borun Corporation ( BORN), down 6.7%, Tianli Agritech ( OINK), down 5.4%, and Green Mountain Coffee Roasters ( GMCR), down 5.3%.
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Bunge Limited, through its subsidiaries, engages in the agriculture and food businesses worldwide. Bunge has a market cap of $11.68 billion and is part of the consumer goods sector. The company has a P/E ratio of 13.5, below the S&P 500 P/E ratio of 17.7. Shares are up 9.9% year to date as of the close of trading on Wednesday. Currently there are five analysts that rate Bunge a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates Bunge as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, increase in net income, attractive valuation levels and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, Castle Brands Incorporated ( ROX), up 9.1%, Seneca Foods Corp. Class A ( SENEA), up 6.1%, Agria Corporation ( GRO), up 5.3%, and Cosan ( CZZ), up 4.9%, were all gainers within the food & beverage industry with Hain Celestial Group ( HAIN) 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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