Companhia De Bebidas Das Americas Ambev (ABV): Today's Featured Food & Beverage Winner

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

Companhia de Bebidas das Americas Ambev ( ABV) pushed the Food & Beverage industry higher today making it today's featured food & beverage winner. The industry as a whole closed the day up 0.7%. By the end of trading, Companhia de Bebidas das Americas Ambev rose $0.59 (1.7%) to $35.10 on average volume. Throughout the day, 4,431,835 shares of Companhia de Bebidas das Americas Ambev exchanged hands as compared to its average daily volume of 2,968,200 shares. The stock ranged in a price between $33.94-$35.37 after having opened the day at $34.66 as compared to the previous trading day's close of $34.51. Other companies within the Food & Beverage industry that increased today were: China Marine Food Group ( CMFO), up 10.1%, Willamette Valley Vineyards ( WVVI), up 6.2%, Tianli Agritech ( OINK), up 5.3% and S&W Seed Company ( SANW), up 4.6%.
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Companhia de Bebidas das Americas Ambev produces, distributes, and sells beer, draft beer, soft drinks, other non-alcoholic beverages, malt, and food in the Americas. It provides carbonated soft drinks, bottled water, isotonic beverages, energy drinks, and ready-to-drink teas. Companhia de Bebidas das Americas Ambev has a market cap of $109.1 billion and is part of the consumer goods sector. The company has a P/E ratio of 103.6, above the S&P 500 P/E ratio of 17.7. Shares are down 17.8% year to date as of the close of trading on Monday. Currently there are 2 analysts that rate Companhia de Bebidas das Americas Ambev a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Companhia de Bebidas das Americas Ambev as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, notable return on equity, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

On the negative front, Omega Protein Corporation ( OME), down 2.9%, Limoneira ( LMNR), down 2.8%, China New Borun Corporation ( BORN), down 2.5% and SkyPeople Fruit Juice ( SPU), down 2.5%.

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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