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 down 0.4%. By the end of trading, Bunge fell 86 cents (-1.1%) to $75.38 on light volume. Throughout the day, 476,339 shares of Bunge exchanged hands as compared to its average daily volume of one million shares. The stock ranged in price between $75.05-$75.80 after having opened the day at $75.80 as compared to the previous trading day's close of $76.24. Other companies within the Food & Beverage industry that declined today were: Tianli Agritech ( OINK), down 10.2%, Coffee Holding Company ( JVA), down 8.9%, Central European Distribution ( CEDC), down 7.4%, and Le Gaga Holdings ( GAGA), down 4.8%.
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Bunge Limited, through its subsidiaries, engages in agriculture and food business worldwide. Bunge has a market cap of $11.14 billion and is part of the consumer goods sector. The company has a P/E ratio of 30.3, above the S&P 500 P/E ratio of 17.7. Shares are up 4.9% year to date as of the close of trading on Friday. 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 solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Seneca Foods ( SENEB), up 9.6%, G. Willi-Food International ( WILC), up 9.2%, S&W Seed Company ( SANW), up 4.1%, and Industrias Bachoco S.A.B. de C.V ( IBA), up 4%, were all gainers within the food & beverage industry with Mead Johnson Nutrition Company ( MJN) 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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