Mead Johnson Nutrition Company (MJN): 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

Mead Johnson Nutrition Company ( MJN) pushed the Food & Beverage industry lower today making it today's featured Food & Beverage laggard. The industry as a whole closed the day down 0.9%. By the end of trading, Mead Johnson Nutrition Company fell $1.31 (-1.7%) to $76.94 on average volume. Throughout the day, 1,996,546 shares of Mead Johnson Nutrition Company exchanged hands as compared to its average daily volume of 1,408,900 shares. The stock ranged in price between $76.22-$77.76 after having opened the day at $77.52 as compared to the previous trading day's close of $78.25. Other companies within the Food & Beverage industry that declined today were: Tianli Agritech ( OINK), down 12.5%, S&W Seed Company ( SANW), down 6.6%, Willamette Valley Vineyards ( WVVI), down 6.2% and Adecoagro ( AGRO), down 5.8%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass

Mead Johnson Nutrition Company manufactures, distributes, and sells infant formulas, children's nutrition, and other nutritional products. Mead Johnson Nutrition Company has a market cap of $15.8 billion and is part of the consumer goods sector. The company has a P/E ratio of 26.0, above the S&P 500 P/E ratio of 17.7. Shares are up 18.8% year to date as of the close of trading on Friday. Currently there are 5 analysts that rate Mead Johnson Nutrition Company a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Mead Johnson Nutrition Company as a buy. The company's strengths can be seen in multiple areas, such as its notable return on equity, expanding profit margins, good cash flow from operations, growth in earnings per share and revenue growth. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the positive front, Chiquita Brands International ( CQB), down 6.1%, Crumbs Bake Shop ( CRMB), down 6.0%, Fresh Del Monte Produce ( FDP), down 2.1% and Craft Brew Alliance ( BREW), down 1.8% , were all gainers within the food & beverage industry with Monster Beverage ( MNST) 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).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
null

If you liked this article you might like

McCormick in $4.2 Billion Play for Reckitt Benckiser's Food Division

Reckitt Wrecked By Petya Virus

Reckitt Benckiser Says Petya Cyber Attack Will Slam Q2 Revenues

Reckitt to Close $18 Billion Mead Johnson Takeover Deal June 15