Mead Johnson Nutrition Company (MJN): Consumer Goods' Highlighted Dud Of The Day

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.

Mead Johnson Nutrition Company ( MJN) pushed the Consumer Goods sector lower today making it today's featured Consumer Goods laggard. The sector as a whole closed the day down 0.2%. By the end of trading, Mead Johnson Nutrition Company fell 91 cents (-1.2%) to $75.73 on light volume. Throughout the day, 997,498 shares of Mead Johnson Nutrition Company exchanged hands as compared to its average daily volume of 1.9 million shares. The stock ranged in price between $75.50-$76.59 after having opened the day at $76.50 as compared to the previous trading day's close of $76.64. Other companies within the Consumer Goods sector that declined today were: Chromcraft Revington ( CRC), down 29.5%, Central European Distribution ( CEDC), down 26.3%, Kid Brands ( KID), down 16.3%, and Tandy Brands Accessories ( TBAC), down 7.4%.
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Mead Johnson Nutrition Company manufactures, distributes, and sells infant formulas, children's nutrition, and other nutritional products. Mead Johnson Nutrition Company has a market cap of $15.34 billion and is part of the food & beverage industry. The company has a P/E ratio of 25.7, above the S&P 500 P/E ratio of 17.7. Shares are up 16.3% year to date as of the close of trading on Monday. Currently there are six analysts that rate Mead Johnson Nutrition Company a buy, no analysts rate it a sell, and five rate it a hold.

TheStreet Ratings rates Mead Johnson Nutrition Company as a buy. The company's strengths can be seen in multiple areas, such as its notable return on equity, expanding profit margins, good cash flow from operations, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the positive front, Xerium Technologies ( XRM), up 20.8%, Summer Infant ( SUMR), up 12.7%, Mannatech ( MTEX), up 8%, and Ever-Glory International Group ( EVK), up 7.3%, were all gainers within the consumer goods sector with Fossil ( FOSL) being today's featured consumer goods sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the consumer goods sector could consider iShares Dow Jones US Cons Goods ( IYK) while those bearish on the consumer goods sector could consider ProShares Ultra Sht Consumer Goods ( SZK).

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