Bunge Ltd (BG): Today's Featured Consumer Goods 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

Bunge ( BG) pushed the Consumer Goods sector higher today making it today's featured consumer goods winner. The sector as a whole closed the day up 0.4%. By the end of trading, Bunge rose $1.09 (1.5%) to $72.60 on light volume. Throughout the day, 801,824 shares of Bunge exchanged hands as compared to its average daily volume of 1,205,000 shares. The stock ranged in a price between $71.32-$72.64 after having opened the day at $71.36 as compared to the previous trading day's close of $71.51. Other companies within the Consumer Goods sector that increased today were: Omega Protein Corporation ( OME), up 16.5%, Summer Infant ( SUMR), up 11.0%, Federal-Mogul ( FDML), up 7.0% and SORL Auto Parts ( SORL), up 6.5%.
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Bunge Limited, through its subsidiaries, engages in agriculture and food business worldwide. Bunge has a market cap of $10.5 billion and is part of the food & beverage industry. The company has a P/E ratio of 24.5, above the S&P 500 P/E ratio of 17.7. Shares are down 1.6% year to date as of the close of trading on Tuesday. Currently there are 4 analysts that rate Bunge a buy, no analysts rate it a sell, and 4 rate it a hold.

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

On the negative front, Blyth ( BTH), down 13.8%, Appliance Recycling Centers Of America ( ARCI), down 10.0%, Tandy Brands Accessories ( TBAC), down 7.5% and China Shengda Packaging Group ( CPGI), down 6.2% , were all laggards within the consumer goods sector with SodaStream International ( SODA) being today's consumer goods sector laggard.

For investors not wanting singular stock exposure, 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).

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