3 Stocks Dragging The Consumer Goods Sector Downward

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

One out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading up 16 points (0.1%) at 16,733 as of Monday, June 2, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,394 issues advancing vs. 1,564 declining with 187 unchanged.

The Consumer Goods sector currently sits down 0.5% versus the S&P 500, which is unchanged. On the negative front, top decliners within the sector include Icahn ( IEP), down 3.7%, and Kraft Foods Group ( KRFT), down 0.8%. Top gainers within the sector include Coca-Cola HBC ( CCH), up 3.2%, Tyson Foods ( TSN), up 1.8% and Toyota Motor Corp ADR ( TM), up 0.6%.

TheStreet would like to highlight 3 stocks pushing the sector lower today:

3. Lorillard ( LO) is one of the companies pushing the Consumer Goods sector lower today. As of noon trading, Lorillard is down $1.52 (-2.4%) to $60.65 on light volume. Thus far, 960,001 shares of Lorillard exchanged hands as compared to its average daily volume of 3.7 million shares. The stock has ranged in price between $60.43-$62.05 after having opened the day at $61.92 as compared to the previous trading day's close of $62.17.

Lorillard, Inc., through its subsidiaries, manufactures and sells cigarettes in the United States. The company operates through two segments, Cigarettes and Electronic Cigarettes. Lorillard has a market cap of $21.8 billion and is part of the tobacco industry. Shares are up 22.7% year-to-date as of the close of trading on Friday. Currently there are 2 analysts that rate Lorillard a buy, 1 analyst rates it a sell, and 3 rate it a hold.

TheStreet Ratings rates Lorillard as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Lorillard Ratings Report now.

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

2. As of noon trading, PepsiCo ( PEP) is down $0.47 (-0.5%) to $87.86 on light volume. Thus far, 1.4 million shares of PepsiCo exchanged hands as compared to its average daily volume of 4.9 million shares. The stock has ranged in price between $87.76-$88.39 after having opened the day at $88.12 as compared to the previous trading day's close of $88.33.

PepsiCo, Inc. operates as a food and beverage company worldwide. Its Frito-Lay North America segment offers Lay's and Ruffles potato chips, Doritos and Tostitos tortilla chips, Cheetos cheese flavored snacks, dips, Fritos corn chips, and Santitas tortilla chips. PepsiCo has a market cap of $133.0 billion and is part of the food & beverage industry. Shares are up 6.5% year-to-date as of the close of trading on Friday. Currently there are 9 analysts that rate PepsiCo a buy, no analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates PepsiCo as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, revenue growth, notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Get the full PepsiCo Ratings Report now.

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

1. As of noon trading, Tesla Motors ( TSLA) is down $2.81 (-1.4%) to $204.96 on average volume. Thus far, 3.3 million shares of Tesla Motors exchanged hands as compared to its average daily volume of 7.4 million shares. The stock has ranged in price between $201.67-$209.35 after having opened the day at $207.33 as compared to the previous trading day's close of $207.77.

Tesla Motors, Inc. designs, develops, manufactures, and sells electric vehicles and electric vehicle powertrain components. Tesla Motors has a market cap of $26.1 billion and is part of the automotive industry. Shares are up 38.1% year-to-date as of the close of trading on Friday. Currently there are 5 analysts that rate Tesla Motors a buy, 1 analyst rates it a sell, and 6 rate it a hold.

TheStreet Ratings rates Tesla Motors as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and poor profit margins. Get the full Tesla Motors Ratings Report now.

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

If you are interested in one of these 3 stocks, 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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