Dean Foods Company (DF): 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.

Dean Foods Company ( DF) pushed the Food & Beverage industry lower today making it today's featured Food & Beverage laggard. The industry as a whole closed the day down 0.2%. By the end of trading, Dean Foods Company fell 47 cents (-2.5%) to $18.35 on average volume. Throughout the day, 2.4 million shares of Dean Foods Company exchanged hands as compared to its average daily volume of 2.6 million shares. The stock ranged in price between $18.35-$18.87 after having opened the day at $18.75 as compared to the previous trading day's close of $18.82. Other companies within the Food & Beverage industry that declined today were: Farmer Bros ( FARM), down 5.8%, Origin Agritech ( SEED), down 5.4%, Green Mountain Coffee Roasters ( GMCR), down 4.5%, and Reeds ( REED), down 4.3%.
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Dean Foods Company operates as a food and beverage company in the United States. The company operates in three segments: Fresh Dairy Direct, WhiteWave-Alpro, and Morningstar. Dean Foods Company has a market cap of $3.47 billion and is part of the consumer goods sector. The company has a P/E ratio of 28.4, above the S&P 500 P/E ratio of 17.7. Shares are up 13.6% year to date as of the close of trading on Friday. Currently there are seven analysts that rate Dean Foods Company a buy, no analysts rate it a sell, and five rate it a hold.

TheStreet Ratings rates Dean Foods Company as a hold. The company's strengths can be seen in multiple areas, such as its notable return on equity, good cash flow from operations and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins.

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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