Bunge Ltd (BG): 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

Bunge ( BG) pushed the Consumer Goods sector lower today making it today's featured Consumer Goods laggard. The sector as a whole closed the day down 0.4%. By the end of trading, Bunge fell $0.90 (-1.2%) to $70.94 on light volume. Throughout the day, 674,720 shares of Bunge exchanged hands as compared to its average daily volume of 1,072,500 shares. The stock ranged in price between $70.43-$72.10 after having opened the day at $72.02 as compared to the previous trading day's close of $71.84. Other companies within the Consumer Goods sector that declined today were: Synutra International ( SYUT), down 6.7%, Coldwater Creek ( CWTR), down 5.5%, Sony Corporation ( SNE), down 5.5% and Primo Water ( PRMW), down 5.2%.
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Bunge Limited, through its subsidiaries, engages in agriculture and food business worldwide. Bunge has a market cap of $10.4 billion and is part of the food & beverage industry. The company has a P/E ratio of 24.3, above the S&P 500 P/E ratio of 17.7. Shares are down 1.2% year to date as of the close of trading on Thursday. Currently there are 4 analysts that rate Bunge a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Bunge as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, Tofutti Brands ( TOF), down 8.4%, SGOCO Group ( SGOC), down 6.3%, Willamette Valley Vineyards ( WVVI), down 6.3% and Reeds ( REED), down 5.4% , were all gainers within the consumer goods sector with Dean Foods Company ( DF) 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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