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 up 0.4%. By the end of trading, Bunge fell 96 cents (-1.3%) to $73.15 on average volume. Throughout the day, 1.4 million shares of Bunge exchanged hands as compared to its average daily volume of one million shares. The stock ranged in price between $72.49-$73.45 after having opened the day at $73.23 as compared to the previous trading day's close of $74.11. Other companies within the Food & Beverage industry that declined today were: Central European Distribution ( CEDC), down 17.4%, Leading Brands ( LBIX), down 6%, Seneca Foods ( SENEB), down 4.2%, and Reeds ( REED), down 3.9%.
  • 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.

Bunge Limited, through its subsidiaries, engages in the agriculture and food businesses worldwide. Bunge has a market cap of $10.8 billion and is part of the consumer goods sector. The company has a P/E ratio of 16, below the S&P 500 P/E ratio of 17.7. Shares are up 1.7% year to date as of the close of trading on Thursday. Currently there are four analysts that rate Bunge a buy, no analysts rate it a sell, and four 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, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

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).

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

Learn to Love Selloffs

M&A and Dividends Provide Reasons to Dig European Miners

Grain Glut Has Bunge Searching Couch Cushions for Loose Change

Bunge Stock Rises After It Hires JPMorgan and Shearman & Sterling to Defend Against Takeover Bid

Stocks Add to Gains as Fed Supports Balance Sheet Reduction, Rate Hike 'Soon'