Archer-Daniels Midland Company (ADM): 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

Archer-Daniels Midland Company ( ADM) pushed the Food & Beverage industry higher today making it today's featured food & beverage winner. The industry as a whole closed the day up 1.0%. By the end of trading, Archer-Daniels Midland Company rose $0.60 (1.8%) to $34.20 on average volume. Throughout the day, 3,935,884 shares of Archer-Daniels Midland Company exchanged hands as compared to its average daily volume of 5,019,800 shares. The stock ranged in a price between $33.65-$34.24 after having opened the day at $33.83 as compared to the previous trading day's close of $33.60. Other companies within the Food & Beverage industry that increased today were: China New Borun Corporation ( BORN), up 17.0%, Key Technology ( KTEC), up 12.8%, Kraft Foods Group ( KRFT), up 5.1% and Seneca Foods Corp. Class A ( SENEA), up 5.0%.
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Archer-Daniels-Midland Company manufactures and sells protein meal, vegetable oil, corn sweeteners, flour, biodiesel, ethanol, and other value-added food and feed ingredients; and processes oilseeds, corn, wheat, cocoa, and other agricultural commodities. Archer-Daniels Midland Company has a market cap of $22.1 billion and is part of the consumer goods sector. The company has a P/E ratio of 15.3, below the S&P 500 P/E ratio of 17.7. Shares are up 22.7% year to date as of the close of trading on Thursday. Currently there are 3 analysts that rate Archer-Daniels Midland Company a buy, 3 analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Archer-Daniels Midland Company as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, attractive valuation levels, 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 somewhat disappointing return on equity.

On the negative front, Dole Food ( DOLE), down 6.6%, United Breweries Company ( CCU), down 4.4%, Castle Brands Incorporated ( ROX), down 3.0% and Agria Corporation ( GRO), down 2.7% , were all laggards within the food & beverage industry with Hain Celestial Group ( HAIN) 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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