5 Consumer Goods Stocks Dragging The Sector Down

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

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 6 points (0.0%) at 14,695 as of Friday, April 26, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 953 issues advancing vs. 1,941 declining with 134 unchanged.

The Consumer Goods sector currently sits down 0.56 versus the S&P 500, which is down 0.43. On the negative front, top decliners within the sector include Sony Corporation ( SNE), down 4.65, VF Corporation ( VFC), down 3.73, International Paper ( IP), down 2.12 and Companhia de Bebidas das Americas Ambev ( ABV.C), down 1.24. A company within the sector that increased today was Coca-Cola Hellenic Bottling Company S.A ( CCH), up 4.89.

TheStreet Ratings group would like to highlight 5 stocks pushing the sector lower today:

5. Fibria Celulose ( FBR) is one of the companies pushing the Consumer Goods sector lower today. As of noon trading, Fibria Celulose is down $0.62 (-5.5%) to $10.64 on heavy volume Thus far, 1.6 million shares of Fibria Celulose exchanged hands as compared to its average daily volume of 1.5 million shares. The stock has ranged in price between $10.47-$11.19 after having opened the day at $11.18 as compared to the previous trading day's close of $11.26.

Fibria Celulose S.A. engages in the production, sale, and export of short fiber pulp. The company primarily offers bleached eucalyptus kraft pulp used in the manufacture of toilet paper; uncoated and coated paper for printing and writing; and coated cardboard for packaging. Fibria Celulose has a market cap of $6.3 billion and is part of the consumer non-durables industry. The company has a P/E ratio of 26.3, above the S&P 500 P/E ratio of 17.7. Shares are down 1.0% year to date as of the close of trading on Thursday.

TheStreet Ratings rates Fibria Celulose as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we find that the company's return on equity has been disappointing. Get the full Fibria Celulose Ratings Report now.

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.

4. As of noon trading, Honda Motor ( HMC) is down $0.48 (-1.2%) to $40.30 on heavy volume Thus far, 608,125 shares of Honda Motor exchanged hands as compared to its average daily volume of 518,800 shares. The stock has ranged in price between $39.97-$40.35 after having opened the day at $40.32 as compared to the previous trading day's close of $40.78.

Honda Motor Co., Ltd., together with its subsidiaries, engages in the development, manufacture, and distribution of motorcycles, automobiles, and power products worldwide. Honda Motor has a market cap of $72.2 billion and is part of the automotive industry. The company has a P/E ratio of 11.2, below the S&P 500 P/E ratio of 17.7. Shares are up 10.4% year to date as of the close of trading on Thursday.

TheStreet Ratings rates Honda Motor as a buy. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, increase in stock price during the past year, largely solid financial position with reasonable debt levels by most measures, notable return on equity and growth in earnings per share. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Honda Motor Ratings Report now.

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.

3. As of noon trading, BRF ( BRFS) is down $0.52 (-2.1%) to $23.81 on light volume Thus far, 508,355 shares of BRF exchanged hands as compared to its average daily volume of 1.8 million shares. The stock has ranged in price between $23.76-$24.37 after having opened the day at $24.24 as compared to the previous trading day's close of $24.33.

BRF-Brasil Foods S.A., together with its subsidiaries, engages in raising, producing, and slaughtering poultry, pork, and beef in Brazil. BRF has a market cap of $20.9 billion and is part of the food & beverage industry. The company has a P/E ratio of 48.9, above the S&P 500 P/E ratio of 17.7. Shares are up 15.3% year to date as of the close of trading on Thursday.

TheStreet Ratings rates BRF as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full BRF Ratings Report now.

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.

2. As of noon trading, Companhia de Bebidas das Americas Ambev ( ABV) is down $0.44 (-1.1%) to $38.98 on average volume Thus far, 988,875 shares of Companhia de Bebidas das Americas Ambev exchanged hands as compared to its average daily volume of 2.0 million shares. The stock has ranged in price between $38.84-$39.33 after having opened the day at $39.17 as compared to the previous trading day's close of $39.41.

Companhia de Bebidas das Americas Ambev engages in the production, distribution, and sale of beer, draft beer, carbonated soft drinks, malt, and other non-alcoholic and non-carbonated products in the Americas. It also sells bottled water, isotonics, and ready-to-drink teas. Companhia de Bebidas das Americas Ambev has a market cap of $124.0 billion and is part of the food & beverage industry. The company has a P/E ratio of 103.6, above the S&P 500 P/E ratio of 17.7. Shares are down 6.1% year to date as of the close of trading on Thursday.

TheStreet Ratings rates Companhia de Bebidas das Americas Ambev as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full Companhia de Bebidas das Americas Ambev Ratings Report now.

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.

1. As of noon trading, General Motors ( GM) is down $0.60 (-1.9%) to $30.11 on average volume Thus far, 4.2 million shares of General Motors exchanged hands as compared to its average daily volume of 10.8 million shares. The stock has ranged in price between $30.06-$30.80 after having opened the day at $30.79 as compared to the previous trading day's close of $30.71.

General Motors Company (GM) designs, manufactures, and markets cars, crossovers, trucks, and automobile parts worldwide. General Motors has a market cap of $41.6 billion and is part of the automotive industry. The company has a P/E ratio of 10.4, below the S&P 500 P/E ratio of 17.7. Shares are up 6.5% year to date as of the close of trading on Thursday.

TheStreet Ratings rates General Motors as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, increase in net income, attractive valuation levels and growth in earnings per share. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full General Motors Ratings Report now.

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.

If you are interested in one of these 5 stocks, 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).

A reminder about TheStreet Ratings group: 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.
null

If you liked this article you might like

B. Riley Expands in IPO Market With FBR

B. Riley Expands in IPO Market With FBR

After a Big Year, Paper Stocks Offer Mixed Prospects for Investors

After a Big Year, Paper Stocks Offer Mixed Prospects for Investors

What To Hold: 3 Hold-Rated Dividend Stocks FBR, HPQ, BKS

What To Hold: 3 Hold-Rated Dividend Stocks FBR, HPQ, BKS

3 Stocks Dragging The Consumer Goods Sector Downward

3 Stocks Dragging The Consumer Goods Sector Downward

These 5 Stocks Have Small Price Tags -- and Big Gain Potential

These 5 Stocks Have Small Price Tags -- and Big Gain Potential