Bunge Ltd (BG): Today's Featured Food & Beverage Winner

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

Bunge ( BG) 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, Bunge rose $0.74 (1.1%) to $67.25 on average volume. Throughout the day, 1,196,605 shares of Bunge exchanged hands as compared to its average daily volume of 1,249,900 shares. The stock ranged in a price between $65.98-$67.45 after having opened the day at $66.52 as compared to the previous trading day's close of $66.51. Other companies within the Food & Beverage industry that increased today were: Limoneira ( LMNR), up 4.2%, BRF ( BRFS), up 3.6%, Leading Brands ( LBIX), up 3.2% and PepsiCo ( PEP), up 3.0%.
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Bunge Limited, through its subsidiaries, engages in agriculture and food business worldwide. Bunge has a market cap of $9.8 billion and is part of the consumer goods sector. The company has a P/E ratio of 26.5, above the S&P 500 P/E ratio of 17.7. Shares are down 8.5% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Bunge as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the negative front, Central European Distribution ( CEDC), down 21.6%, Crumbs Bake Shop ( CRMB), down 15.4%, China New Borun Corporation ( BORN), down 9.2% and Coca-Cola Hellenic Bottling Company S.A ( CCH), down 7.0% , were all laggards within the food & beverage industry with SodaStream International ( SODA) 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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