Coca-Cola Enterprises Inc (CCE): 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

Coca-Cola ( CCE) pushed the Food & Beverage industry lower today making it today's featured Food & Beverage laggard. The industry as a whole closed the day up 0.5%. By the end of trading, Coca-Cola fell $0.44 (-1.1%) to $38.21 on heavy volume. Throughout the day, 4,049,045 shares of Coca-Cola exchanged hands as compared to its average daily volume of 2,512,800 shares. The stock ranged in price between $38.19-$38.90 after having opened the day at $38.67 as compared to the previous trading day's close of $38.65. Other companies within the Food & Beverage industry that declined today were: Coca-Cola Hellenic Bottling Company S.A ( OCCH), down 5.8%, China New Borun Corporation ( BORN), down 5.5%, MGP Ingredients ( MGPI), down 5.4% and Gruma S.A.B. de C.V ( GMK), down 4.8%.
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Coca-Cola Enterprises, Inc. produces, distributes, and markets nonalcoholic beverages. It provides still and sparkling waters, flavored waters, juice and juice drinks, sports drinks, energy drinks, teas, and coffees. Coca-Cola has a market cap of $10.7 billion and is part of the consumer goods sector. The company has a P/E ratio of 18.5, above the S&P 500 P/E ratio of 17.7. Shares are up 21.8% year to date as of the close of trading on Thursday. Currently there are 6 analysts that rate Coca-Cola a buy, 1 analyst rates it a sell, and 5 rate it a hold.

TheStreet Ratings rates Coca-Cola as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, notable return on equity, reasonable valuation levels, good cash flow from operations 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, Central European Distribution ( CEDC), down 11.1%, American Lorain ( ALN), down 10.1%, S&W Seed Company ( SANW), down 6.1% and Tianli Agritech ( OINK), down 5.7% , were all gainers within the food & beverage industry with Dean Foods Company ( DF) 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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