Beam Inc (BEAM): Today's Featured Food & Beverage Underperformer

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 up 0.4%. By the end of trading, Beam fell 89 cents (-1.4%) to $61.55 on heavy volume. Throughout the day, 1.8 million shares of Beam exchanged hands as compared to its average daily volume of 733,000 shares. The stock ranged in price between $61.19-$62.47 after having opened the day at $62.42 as compared to the previous trading day's close of $62.44. Other companies within the Food & Beverage industry that declined today were: China Marine Food Group ( CMFO), down 6.8%, Willamette Valley Vineyards ( WVVI), down 5.4%, Amira Nature Foods ( ANFI), down 4.5%, and Crumbs Bake Shop ( CRMB), down 4.4%.
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Beam Inc. manufactures and sells distilled spirits worldwide. The company's principal products include bourbon whiskey, tequila, Scotch whisky, Canadian whisky, vodka, cognac, rum, cordials, and ready-to-drink pre-mixed cocktails. Beam has a market cap of $10.31 billion and is part of the consumer goods sector. The company has a P/E ratio of 25.9, above the S&P 500 P/E ratio of 17.7. Shares are up 2.2% year to date as of the close of trading on Wednesday. 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, impressive record of earnings per share growth, increase in net income, good cash flow from operations and increase in stock price during the past year. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the positive front, Primo Water ( PRMW), up 17.2%, Tofutti Brands ( TOF), up 6.6%, MGP Ingredients ( MGPI), up 4.3%, and Monster Beverage ( MNST), up 4.1%, were all gainers within the food & beverage industry with General Mills ( GIS) 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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