J.M. Smucker Co. (SJM): 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

J.M. Smucker ( SJM) pushed the Food & Beverage industry lower today making it today's featured Food & Beverage laggard. The industry as a whole closed the day up 0.2%. By the end of trading, J.M. Smucker fell $3.99 (-3.9%) to $98.38 on heavy volume. Throughout the day, 1,881,048 shares of J.M. Smucker exchanged hands as compared to its average daily volume of 497,200 shares. The stock ranged in price between $96.75-$103.88 after having opened the day at $103.60 as compared to the previous trading day's close of $102.37. Other companies within the Food & Beverage industry that declined today were: Omega Protein Corporation ( OME), down 12.5%, Lifeway Foods ( LWAY), down 5.1%, Cosan ( CZZ), down 4.3% and China New Borun Corporation ( BORN), down 2.9%.
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The J. M. Smucker Company engages in manufacturing and marketing branded food products primarily in the United States, Canada, and internationally. J.M. Smucker has a market cap of $11.0 billion and is part of the consumer goods sector. The company has a P/E ratio of 21.7, above the S&P 500 P/E ratio of 17.7. Shares are up 18.7% year to date as of the close of trading on Wednesday. Currently there are 6 analysts that rate J.M. Smucker a buy, no analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates J.M. Smucker as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, increase in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, Amira Nature Foods ( ANFI), down 6.2%, Dole Food ( DOLE), down 5.0%, MGP Ingredients ( MGPI), down 4.5% and Primo Water ( PRMW), down 3.8% , were all gainers within the food & beverage industry with Companhia de Bebidas das Americas Ambev ( ABV) 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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