Food & Beverage Industry Underperformer Of The Day: PepsiCo Inc (PEP)

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.

PepsiCo ( PEP) 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, PepsiCo fell 81 cents (-1%) to $77.83 on average volume. Throughout the day, 6.8 million shares of PepsiCo exchanged hands as compared to its average daily volume of 5.6 million shares. The stock ranged in price between $77.60-$78.64 after having opened the day at $78.61 as compared to the previous trading day's close of $78.64. Other companies within the Food & Beverage industry that declined today were: Central European Distribution ( CEDC), down 16.7%, China New Borun Corporation ( BORN), down 3.3%, WhiteWave Foods ( WWAV), down 2.5%, and Coca-Cola Hellenic Bottling Company S.A ( CCH), down 2.4%.
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PepsiCo, Inc. operates as a food and beverage company worldwide. PepsiCo has a market cap of $117.75 billion and is part of the consumer goods sector. The company has a P/E ratio of 19.5, above the S&P 500 P/E ratio of 17.7. Shares are up 11.3% year to date as of the close of trading on Friday. Currently there are 11 analysts that rate PepsiCo a buy, no analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates PepsiCo as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, reasonable valuation levels, good cash flow from operations and growth in earnings per share. 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, Castle Brands Incorporated ( ROX), up 10.6%, Synutra International ( SYUT), up 6.2%, Reeds ( REED), up 4.4%, and MGP Ingredients ( MGPI), up 4.2%, 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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