Kellogg Company (K): Today's Featured Food & Beverage Laggard

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

Kellogg Company ( K) pushed the Food & Beverage industry lower today making it today's featured Food & Beverage laggard. The industry as a whole closed the day up 0.6%. By the end of trading, Kellogg Company fell $1.19 (-1.8%) to $63.42 on heavy volume. Throughout the day, 3,693,668 shares of Kellogg Company exchanged hands as compared to its average daily volume of 1,638,500 shares. The stock ranged in price between $62.58-$65.73 after having opened the day at $65.19 as compared to the previous trading day's close of $64.61. Other companies within the Food & Beverage industry that declined today were: Boston Beer Company ( SAM), down 11.6%, Inventure Foods ( SNAK), down 6.2%, SkyPeople Fruit Juice ( SPU), down 4.7% and Primo Water ( PRMW), down 3.9%.
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Kellogg Company, together with its subsidiaries, manufactures and markets ready-to-eat cereal and convenience food products primarily in North America, Europe, Latin America, and the Asia Pacific. Kellogg Company has a market cap of $23.7 billion and is part of the consumer goods sector. The company has a P/E ratio of 24.4, above the S&P 500 P/E ratio of 17.7. Shares are up 15.7% year to date as of the close of trading on Wednesday. Currently there are 3 analysts that rate Kellogg Company a buy, 1 analyst rates it a sell, and 14 rate it a hold.

TheStreet Ratings rates Kellogg Company as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, solid stock price performance, reasonable valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Leading Brands ( LBIX), down 10.9%, Central European Distribution ( CEDC), down 7.9%, WhiteWave Foods ( WWAV), down 5.6% and Omega Protein Corporation ( OME), down 5.6% , were all gainers within the food & beverage industry with Coca-Cola ( CCE) 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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