Dr Pepper Snapple Group Inc. (DPS): 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.

Dr Pepper Snapple Group ( DPS) pushed the Food & Beverage industry lower today making it today's featured Food & Beverage laggard. The industry as a whole closed the day down 0.1%. By the end of trading, Dr Pepper Snapple Group fell $2.63 (-5.8%) to $42.69 on heavy volume. Throughout the day, 7.7 million shares of Dr Pepper Snapple Group exchanged hands as compared to its average daily volume of 1.1 million shares. The stock ranged in price between $42.10-$43.32 after having opened the day at $43.17 as compared to the previous trading day's close of $45.32. Other companies within the Food & Beverage industry that declined today were: Dean Foods Company ( DF), down 9.2%, Boulder Brands ( BDBD), down 6.3%, Boulder Brands ( SMBL), down 6.3%, and Limoneira ( LMNR), down 6%.
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Dr Pepper Snapple Group, Inc. engages in the ownership, manufacture, and distribution of non-alcoholic beverages in the United States, Canada, Mexico, and the Caribbean. Dr Pepper Snapple Group has a market cap of $9.45 billion and is part of the consumer goods sector. The company has a P/E ratio of 15.6, below the S&P 500 P/E ratio of 17.7. Shares are up 2.8% year to date as of the close of trading on Tuesday. Currently there are three analysts that rate Dr Pepper Snapple Group a buy, one analyst rates it a sell, and eight rate it a hold.

TheStreet Ratings rates Dr Pepper Snapple Group as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, increase in net income, notable return on equity and reasonable valuation levels. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the positive front, Central European Distribution ( CEDC), up 6.1%, Diamond Foods ( DMND), up 3.9%, SkyPeople Fruit Juice ( SPU), up 3.2%, and Omega Protein Corporation ( OME), up 3.2%, were all gainers within the food & beverage industry with Companhia de Bebidas das Americas Ambev ( ABV) 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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