SodaStream International Ltd. (SODA): 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

SodaStream International ( SODA) pushed the Food & Beverage industry lower today making it today's featured Food & Beverage laggard. The industry as a whole closed the day up 0.5%. By the end of trading, SodaStream International fell $1.80 (-2.5%) to $71.02 on average volume. Throughout the day, 1,043,309 shares of SodaStream International exchanged hands as compared to its average daily volume of 1,100,600 shares. The stock ranged in price between $70.60-$74.49 after having opened the day at $74.49 as compared to the previous trading day's close of $72.82. Other companies within the Food & Beverage industry that declined today were: Leading Brands ( LBIX), down 7.9%, Primo Water ( PRMW), down 3.8%, Lifeway Foods ( LWAY), down 3.3% and Griffin Land & Nurseries ( GRIF), down 3.2%.
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SodaStream International Ltd. engages in the development, manufacture, and sale of home beverage carbonation systems that enable consumers to transform ordinary tap water instantly into carbonated soft drinks and sparkling water. SodaStream International has a market cap of $1.5 billion and is part of the consumer goods sector. The company has a P/E ratio of 33.0, above the S&P 500 P/E ratio of 17.7. Shares are up 62.2% year to date as of the close of trading on Friday. Currently there are 5 analysts that rate SodaStream International a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates SodaStream International as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we find that the stock itself is trading at a premium valuation.

On the positive front, Tianli Agritech ( OINK), down 30.5%, Andersons ( ANDE), down 2.9%, Embotelladora Andina ( AKO.B), down 2.9% and Flowers Foods ( FLO), down 2.7% , 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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