Companhia De Bebidas Das Americas Ambev (ABV): Today's Featured Consumer Goods 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 Consumer Goods sector lower today making it today's featured Consumer Goods laggard. The sector as a whole closed the day up 0.5%. By the end of trading, Companhia de Bebidas das Americas Ambev fell $0.86 (-2.1%) to $39.41 on average volume. Throughout the day, 2,136,850 shares of Companhia de Bebidas das Americas Ambev exchanged hands as compared to its average daily volume of 2,260,300 shares. The stock ranged in price between $39.40-$40.31 after having opened the day at $40.21 as compared to the previous trading day's close of $40.27. Other companies within the Consumer Goods sector that declined today were: Fuwei Films (Holdings ( FFHL), down 13.4%, Chromcraft Revington ( CRC), down 6.8%, Ever-Glory International Group ( EVK), down 6.4% and China Shengda Packaging Group ( CPGI), down 4.0%.
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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 $131.0 billion and is part of the food & beverage industry. The company has a P/E ratio of 103.6, above the S&P 500 P/E ratio of 17.7. Shares are down 0.4% year to date as of the close of trading on Wednesday. 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. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

On the positive front, Central European Distribution ( CEDC), down 18.4%, MGP Ingredients ( MGPI), down 13.1%, Modine Manufacturing Company ( MOD), down 7.8% and Primo Water ( PRMW), down 7.3% , were all gainers within the consumer goods sector with Fossil ( FOSL) being today's featured consumer goods sector leader.

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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