Companhia De Bebidas Das Americas Ambev (ABV): 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

Companhia de Bebidas das Americas Ambev ( ABV) pushed the Food & Beverage industry lower today making it today's featured Food & Beverage laggard. The industry as a whole closed the day up 0.3%. By the end of trading, Companhia de Bebidas das Americas Ambev fell $0.82 (-1.9%) to $41.50 on average volume. Throughout the day, 2,043,762 shares of Companhia de Bebidas das Americas Ambev exchanged hands as compared to its average daily volume of 2,317,100 shares. The stock ranged in price between $41.38-$42.45 after having opened the day at $42.35 as compared to the previous trading day's close of $42.32. Other companies within the Food & Beverage industry that declined today were: National Beverage Corporation ( FIZZ), down 8.2%, Green Mountain Coffee Roasters ( GMCR), down 4.7%, Coca-Cola Hellenic Bottling Company S.A ( OCCH), down 4.1% and WhiteWave Foods ( WWAV), down 3.8%.
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Companhia de Bebidas das Americas Ambev produces, distributes, and sells beer, draft beer, soft drinks, other non-alcoholic beverages, malt, and food in the Americas. It provides carbonated soft drinks, bottled water, isotonic beverages, energy drinks, and ready-to-drink teas. Companhia de Bebidas das Americas Ambev has a market cap of $133.2 billion and is part of the consumer goods sector. The company has a P/E ratio of 103.6, above the S&P 500 P/E ratio of 17.7. Shares are up 0.8% year to date as of the close of trading on Tuesday. Currently there are 2 analysts that rate Companhia de Bebidas das Americas Ambev a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Companhia de Bebidas das Americas Ambev as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, notable return on equity, expanding profit margins and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

On the positive front, Central European Distribution ( CEDC), down 119.0%, Le Gaga Holdings ( GAGA), down 13.2%, Mead Johnson Nutrition Company ( MJN), down 6.2% and Flowers Foods ( FLO), down 4.3% , were all gainers within the food & beverage industry with Mondelez International ( MDLZ) 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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