Tyson Foods Inc. (TSN): Today's Highlighted Laggard In Food & Beverage

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.

Tyson Foods ( TSN) pushed the Food & Beverage industry lower today making it today's featured Food & Beverage laggard. The industry as a whole closed the day up 0.2%. By the end of trading, Tyson Foods fell 26 cents (-1.1%) to $23.77 on average volume. Throughout the day, 4.8 million shares of Tyson Foods exchanged hands as compared to its average daily volume of 4.7 million shares. The stock ranged in price between $23.41-$24.04 after having opened the day at $24.04 as compared to the previous trading day's close of $24.03. Other companies within the Food & Beverage industry that declined today were: Central European Distribution ( CEDC), down 40.7%, Agria Corporation ( GRO), down 3.6%, Willamette Valley Vineyards ( WVVI), down 3%, and Industrias Bachoco S.A.B. de C.V ( IBA), down 3%.
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Tyson Foods, Inc., together with its subsidiaries, engages in the production, distribution, and marketing of chicken, beef, pork, prepared foods, and related allied products worldwide. It operates in four segments: Chicken, Beef, Pork, and Prepared Foods. Tyson Foods has a market cap of $7.03 billion and is part of the consumer goods sector. The company has a P/E ratio of 15.1, below the S&P 500 P/E ratio of 17.7. Shares are up 23.9% year to date as of the close of trading on Friday. Currently there are nine analysts that rate Tyson Foods a buy, one analyst rates it a sell, and three rate it a hold.

TheStreet Ratings rates Tyson 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 growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, Primo Water ( PRMW), up 19.4%, Monster Beverage ( MNST), up 4.7%, Cresud ( CRESY), up 4.5%, and Crumbs Bake Shop ( CRMB), up 4%, were all gainers within the food & beverage industry with BRF - Brasil Foods ( BRFS) 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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