Dr Pepper Snapple Group Inc. (DPS): Today's Key Contributor To Industry Gains

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.

Dr Pepper Snapple Group ( DPS) pushed the Food & Beverage industry higher today making it today's featured food & beverage winner. The industry as a whole was unchanged today. By the end of trading, Dr Pepper Snapple Group rose 63 cents (1.3%) to $47.61 on average volume. Throughout the day, 1.8 million shares of Dr Pepper Snapple Group exchanged hands as compared to its average daily volume of 1.8 million shares. The stock ranged in a price between $47.04-$47.74 after having opened the day at $47.08 as compared to the previous trading day's close of $46.98. Other companies within the Food & Beverage industry that increased today were: Crumbs Bake Shop ( CRMB), up 12.4%, China Marine Food Group ( CMFO), up 3.9%, Reeds ( REED), up 3.5%, and SodaStream International ( SODA), up 3.1%.
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Dr Pepper Snapple Group, Inc. operates as a brand owner, manufacturer, and distributor of non-alcoholic beverages in the United States, Canada, Mexico, and the Caribbean. Dr Pepper Snapple Group has a market cap of $9.45 billion and is part of the consumer goods sector. The company has a P/E ratio of 15.7, below the S&P 500 P/E ratio of 17.7. Shares are up 6.3% year to date as of the close of trading on Wednesday. Currently there are three analysts that rate Dr Pepper Snapple Group a buy, one analyst rates it a sell, and eight rate it a hold.

TheStreet Ratings rates Dr Pepper Snapple Group as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, reasonable valuation levels, solid stock price performance 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 negative front, Central European Distribution ( CEDC), down 17.7%, Primo Water ( PRMW), down 9.1%, Castle Brands Incorporated ( ROX), down 3.2%, and Cosan ( CZZ), down 2.8%, were all laggards within the food & beverage industry with Companhia de Bebidas das Americas Ambev ( ABV) 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).

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