Beam Inc (BEAM): 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.

Beam ( BEAM) pushed the Consumer Goods sector lower today making it today's featured Consumer Goods laggard. The sector as a whole closed the day down 0.1%. By the end of trading, Beam fell 88 cents (-1.4%) to $60.61 on average volume. Throughout the day, 845,612 shares of Beam exchanged hands as compared to its average daily volume of 923,500 shares. The stock ranged in price between $60.36-$61.70 after having opened the day at $61.59 as compared to the previous trading day's close of $61.49. Other companies within the Consumer Goods sector that declined today were: Furniture Brands International ( FBN), down 21.3%, Blount International ( BLT), down 17.9%, Frederick's of Hollywood Group ( FOH), down 16%, and Dean Foods Company ( DF), down 9.2%.
  • 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.

Beam Inc. produces and sells branded distilled spirits products worldwide. Beam has a market cap of $9.74 billion and is part of the food & beverage industry. The company has a P/E ratio of 25.5, above the S&P 500 P/E ratio of 17.7. Shares are up 0.2% year to date as of the close of trading on Tuesday. Currently there are six analysts that rate Beam a buy, one analyst rates it a sell, and three rate it a hold.

TheStreet Ratings rates Beam as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, increase in net income and solid stock price performance. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

On the positive front, SORL Auto Parts ( SORL), up 8.3%, Central European Distribution ( CEDC), up 6.1%, Chromcraft Revington ( CRC), up 5.3%, and Lorillard ( LO), up 4.9%, were all gainers within the consumer goods sector with Archer-Daniels Midland Company ( ADM) 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).

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.
null

If you liked this article you might like

Bourbon Whiskey -- A Brief History of This All-American Drink

Super Mario Gabelli of Gamco Is King of M&A, as Hillshire Deal Shows

Strong And Under The Radar: Beam (BEAM)

Has America really drunk its fill of these 5 beverage stocks?

David Beckham and Simon Fuller Raise Diageo's Drinks, Bottom Line