Dean Foods Company (DF): 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

Dean Foods Company ( DF) 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, Dean Foods Company fell $0.33 (-1.7%) to $18.63 on heavy volume. Throughout the day, 5,847,786 shares of Dean Foods Company exchanged hands as compared to its average daily volume of 3,333,400 shares. The stock ranged in price between $18.61-$19.03 after having opened the day at $19.00 as compared to the previous trading day's close of $18.96. Other companies within the Food & Beverage industry that declined today were: Farmer Bros ( FARM), down 6.2%, Central European Distribution ( CEDC), down 5.2%, Leading Brands ( LBIX), down 5.2% and Tianli Agritech ( OINK), down 4.3%.
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Dean Foods Company, a food and beverage company, processes and distributes milk, other fluid dairy products, and plant-based beverages. The company operates in two segments, Fresh Dairy Direct and WhiteWave. Dean Foods Company has a market cap of $3.6 billion and is part of the consumer goods sector. The company has a P/E ratio of 22.8, above the S&P 500 P/E ratio of 17.7. Shares are up 14.8% year to date as of the close of trading on Monday. Currently there are 9 analysts that rate Dean Foods Company a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Dean Foods Company as a hold. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and notable return on equity. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, poor profit margins and weak operating cash flow.

On the positive front, Reeds ( REED), down 23.8%, Snyders-Lance ( LNCE), down 4.5%, Key Technology ( KTEC), down 4.5% and Amira Nature Foods ( ANFI), down 3.9% , were all gainers within the food & beverage industry with Coca-Cola ( KO) 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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