Beam Inc (BEAM): 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.

Beam ( BEAM) pushed the Food & Beverage industry lower today making it today's featured Food & Beverage laggard. The industry as a whole closed the day down 0.9%. By the end of trading, Beam fell $1.14 (-1.8%) to $61.46 on light volume. Throughout the day, 526,655 shares of Beam exchanged hands as compared to its average daily volume of 915,100 shares. The stock ranged in price between $61.39-$62.63 after having opened the day at $62.44 as compared to the previous trading day's close of $62.60. Other companies within the Food & Beverage industry that declined today were: Primo Water ( PRMW), down 8.7%, Boulder Brands ( BDBD), down 7.2%, Boulder Brands ( SMBL), down 7.2%, and SodaStream International ( SODA), down 6.4%.
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Beam Inc. produces and sells branded distilled spirits products worldwide. Beam has a market cap of $9.79 billion and is part of the consumer goods sector. The company has a P/E ratio of 25.6, above the S&P 500 P/E ratio of 17.7. Shares are up 0.7% 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 the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

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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