Coca-Cola Co (KO): 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 ( KO) pushed the Food & Beverage industry lower today making it today's featured Food & Beverage laggard. The industry as a whole closed the day down 1.4%. By the end of trading, Coca-Cola fell $0.77 (-1.9%) to $40.65 on average volume. Throughout the day, 16,205,067 shares of Coca-Cola exchanged hands as compared to its average daily volume of 14,172,900 shares. The stock ranged in price between $40.60-$41.40 after having opened the day at $41.40 as compared to the previous trading day's close of $41.42. Other companies within the Food & Beverage industry that declined today were: Central European Distribution ( CEDC), down 41.8%, Tianli Agritech ( OINK), down 4.8%, Tofutti Brands ( TOF), down 3.7% and Primo Water ( PRMW), down 3.7%.
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The Coca-Cola Company, a beverage company, engages in the manufacture, marketing, and sale of nonalcoholic beverages worldwide. The company primarily offers sparkling beverages and still beverages. Coca-Cola has a market cap of $181.8 billion and is part of the consumer goods sector. The company has a P/E ratio of 21.0, above the S&P 500 P/E ratio of 17.7. Shares are up 14.3% year to date as of the close of trading on Tuesday. Currently there are 9 analysts that rate Coca-Cola a buy, no analysts rate it a sell, and 6 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 notable return on equity, reasonable valuation levels, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Synutra International ( SYUT), down 5.0%, National Beverage Corporation ( FIZZ), down 2.5%, Coca-Cola Hellenic Bottling Company S.A ( OCCH), down 2.0% and Key Technology ( KTEC), down 1.9%.

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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