BRF SA (BRFS): 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

BRF ( BRFS) pushed the Food & Beverage industry higher today making it today's featured food & beverage winner. The industry as a whole closed the day down 0.1%. By the end of trading, BRF rose $0.27 (1.1%) to $24.52 on light volume. Throughout the day, 1,132,281 shares of BRF exchanged hands as compared to its average daily volume of 1,814,300 shares. The stock ranged in a price between $24.15-$24.53 after having opened the day at $24.23 as compared to the previous trading day's close of $24.25. Other companies within the Food & Beverage industry that increased today were: China New Borun Corporation ( BORN), up 16.0%, Primo Water ( PRMW), up 11.9%, Dole Food ( DOLE), up 4.9% and Tianli Agritech ( OINK), up 4.6%.
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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 $21.3 billion and is part of the consumer goods sector. The company has a P/E ratio of 49.9, above the S&P 500 P/E ratio of 17.7. Shares are up 14.9% year to date as of the close of trading on Friday. Currently there are 2 analysts that rate BRF a buy, no analysts rate it a sell, and 4 rate it a hold.

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.

On the negative front, Central European Distribution ( CEDC), down 8.3%, Omega Protein Corporation ( OME), down 6.0%, Le Gaga Holdings ( GAGA), down 4.4% and Boulder Brands ( SMBL), down 4.0% , were all laggards within the food & beverage industry with Mondelez International ( MDLZ) 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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