Smithfield Foods Inc. (SFD) Gains Contribute To Strong Performance

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.

Smithfield Foods ( SFD) pushed the Food & Beverage industry higher today making it today's featured food & beverage winner. The industry as a whole closed the day down 0.4%. By the end of trading, Smithfield Foods rose 55 cents (2.1%) to $26.24 on heavy volume. Throughout the day, 3.4 million shares of Smithfield Foods exchanged hands as compared to its average daily volume of 2.1 million shares. The stock ranged in a price between $25.24-$26.34 after having opened the day at $25.41 as compared to the previous trading day's close of $25.69. Other companies within the Food & Beverage industry that increased today were: Willamette Valley Vineyards ( WVVI), up 5.5%, MGP Ingredients ( MGPI), up 5.2%, Lifeway Foods ( LWAY), up 3.9%, and Reeds ( REED), up 3.8%.
  • 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.

Smithfield Foods, Inc., together with its subsidiaries, engages in the production and marketing of fresh meat and packaged meat products in the United States and internationally. Smithfield Foods has a market cap of $3.53 billion and is part of the consumer goods sector. The company has a P/E ratio of 16.7, below the S&P 500 P/E ratio of 17.7. Shares are up 19.1% year to date as of the close of trading on Thursday. Currently there are five analysts that rate Smithfield Foods a buy, one analyst rates it a sell, and four rate it a hold.

TheStreet Ratings rates Smithfield Foods as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, attractive valuation levels, largely solid financial position with reasonable debt levels by most measures and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the negative front, Amira Nature Foods ( ANFI), down 9%, Tofutti Brands ( TOF), down 5.7%, Pilgrims Pride ( PPC), down 4.5%, and Crumbs Bake Shop ( CRMB), down 4.2%, were all laggards within the food & beverage industry with PepsiCo ( PEP) being today's food & beverage industry laggard.

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).

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100% See his top picks for 14-days FREE.

null

More from Markets

Replay: Jim Cramer on Tariffs, the Market Rally, Caterpillar and Micron

Replay: Jim Cramer on Tariffs, the Market Rally, Caterpillar and Micron

Video: When Planning for Retirement, Don't Underestimate Your Life Span

Video: When Planning for Retirement, Don't Underestimate Your Life Span

Video: Here's What May Come Next for Theranos Founder and CEO Elizabeth Holmes

Video: Here's What May Come Next for Theranos Founder and CEO Elizabeth Holmes

Charlie Gasparino Says GE Is Reportedly Looking to Slash Its Dividend Again

Charlie Gasparino Says GE Is Reportedly Looking to Slash Its Dividend Again

GE Confirms $11.1 Billion Transportation Merger With Wabtec

GE Confirms $11.1 Billion Transportation Merger With Wabtec