Archer-Daniels Midland Company (ADM): Food & Beverage's Featured Daily 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.

Archer-Daniels Midland Company ( ADM) pushed the Food & Beverage industry lower today making it today's featured Food & Beverage laggard. The industry as a whole closed the day down 0.8%. By the end of trading, Archer-Daniels Midland Company fell 40 cents (-1.2%) to $32.61 on light volume. Throughout the day, 2.4 million shares of Archer-Daniels Midland Company exchanged hands as compared to its average daily volume of 4.9 million shares. The stock ranged in price between $32.49-$32.97 after having opened the day at $32.86 as compared to the previous trading day's close of $33.01. Other companies within the Food & Beverage industry that declined today were: Tianli Agritech ( OINK), down 10.2%, Central European Distribution ( CEDC), down 8%, Coca-Cola Hellenic Bottling Company S.A ( CCH), down 4.8%, and Primo Water ( PRMW), down 4.2%.
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Archer-Daniels-Midland Company manufactures and sells protein meal, vegetable oil, corn sweeteners, flour, biodiesel, ethanol, and other value-added food and feed ingredients; and processes oilseeds, corn, wheat, cocoa, and other agricultural commodities. Archer-Daniels Midland Company has a market cap of $21.53 billion and is part of the consumer goods sector. The company has a P/E ratio of 15.3, below the S&P 500 P/E ratio of 17.7. Shares are up 19.4% year to date as of the close of trading on Wednesday. Currently there are three analysts that rate Archer-Daniels Midland Company a buy, three analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates Archer-Daniels Midland Company as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, attractive valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, China New Borun Corporation ( BORN), up 2.7%, Reeds ( REED), up 2.5%, Willamette Valley Vineyards ( WVVI), up 2.3%, and Concha y Toro Winery ( VCO), up 2.2%, were all gainers within the food & beverage industry with Hain Celestial Group ( HAIN) 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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