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

Companhia de Bebidas das Americas Ambev ( ABV) pushed the Food & Beverage industry lower today making it today's featured Food & Beverage laggard. The industry as a whole closed the day down 0.5%. By the end of trading, Companhia de Bebidas das Americas Ambev fell $1.12 (-3.0%) to $36.47 on average volume. Throughout the day, 4,049,642 shares of Companhia de Bebidas das Americas Ambev exchanged hands as compared to its average daily volume of 3,242,200 shares. The stock ranged in price between $36.13-$37.69 after having opened the day at $37.28 as compared to the previous trading day's close of $37.59. Other companies within the Food & Beverage industry that declined today were: Tianli Agritech ( OINK), down 7.3%, Green Mountain Coffee Roasters ( GMCR), down 5.9%, Mead Johnson Nutrition Company ( MJN), down 5.7% and Castle Brands Incorporated ( ROX), down 5.4%.

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 $117.0 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 10.5% 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 positive front, China New Borun Corporation ( BORN), up 6.7%, G. Willi-Food International ( WILC), up 4.8%, Coffee Holding Company ( JVA), up 3.0% and Inventure Foods ( SNAK), up 2.3%.

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.

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