3 Stocks Advancing The Food & Beverage Industry

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.

All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 25 points (0.1%) at 16,940 as of Friday, July 11, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,491 issues advancing vs. 1,509 declining with 134 unchanged.

The Food & Beverage industry as a whole closed the day up 0.4% versus the S&P 500, which was up 0.2%. Top gainers within the Food & Beverage industry included Tofutti Brands ( TOF), up 4.4%, Tianli Agritech ( OINK), up 2.0%, G Willi-Food International ( WILC), up 1.6%, China New Borun ( BORN), up 3.1% and Coca-Cola HBC ( CCH), up 2.9%.

TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today:

Coca-Cola HBC ( CCH) is one of the companies that pushed the Food & Beverage industry higher today. Coca-Cola HBC was up $0.65 (2.9%) to $23.10 on heavy volume. Throughout the day, 29,266 shares of Coca-Cola HBC exchanged hands as compared to its average daily volume of 14,900 shares. The stock ranged in a price between $22.91-$23.10 after having opened the day at $23.02 as compared to the previous trading day's close of $22.45.

Coca-Cola HBC AG produces, sells, and distributes non-alcoholic ready-to-drink beverages under bottlers' arrangements, franchise arrangements with third parties, and under its own brand names. Coca-Cola HBC has a market cap of $8.3 billion and is part of the consumer goods sector. Shares are down 23.0% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate Coca-Cola HBC a buy, no analysts rate it a sell, and 1 rates it a hold.

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

TheStreet Ratings rates Coca-Cola HBC as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and weak operating cash flow.

Highlights from TheStreet Ratings analysis on CCH go as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Beverages industry. The net income has significantly decreased by 72.7% when compared to the same quarter one year ago, falling from -$31.27 million to -$54.01 million.
  • Net operating cash flow has significantly decreased to -$46.98 million or 395.62% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Beverages industry and the overall market, COCA-COLA HBC AG's return on equity is below that of both the industry average and the S&P 500.
  • CCH, with its decline in revenue, slightly underperformed the industry average of 2.9%. Since the same quarter one year prior, revenues slightly dropped by 0.1%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • CCH's debt-to-equity ratio of 0.72 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further.

You can view the full analysis from the report here: Coca-Cola HBC Ratings Report

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

At the close, China New Borun ( BORN) was up $0.08 (3.1%) to $2.66 on light volume. Throughout the day, 22,803 shares of China New Borun exchanged hands as compared to its average daily volume of 121,100 shares. The stock ranged in a price between $2.58-$2.69 after having opened the day at $2.58 as compared to the previous trading day's close of $2.58.

China New Borun Corporation produces and distributes corn-based edible alcohol in the People's Republic of China. China New Borun has a market cap of $68.7 million and is part of the consumer goods sector. Shares are up 3.2% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate China New Borun a buy, no analysts rate it a sell, and none rate it a hold.

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

TheStreet Ratings rates China New Borun as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, increase in net income, attractive valuation levels and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from TheStreet Ratings analysis on BORN go as follows:

  • The revenue growth greatly exceeded the industry average of 2.9%. Since the same quarter one year prior, revenues rose by 38.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 212.50% and other important driving factors, this stock has surged by 118.04% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, BORN should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Beverages industry. The net income increased by 207.9% when compared to the same quarter one year prior, rising from $2.05 million to $6.33 million.
  • CHINA NEW BORUN CORP -ADR reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, CHINA NEW BORUN CORP -ADR reported lower earnings of $0.51 versus $1.16 in the prior year.

You can view the full analysis from the report here: China New Borun Ratings Report

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

G Willi-Food International ( WILC) was another company that pushed the Food & Beverage industry higher today. G Willi-Food International was up $0.12 (1.6%) to $7.39 on light volume. Throughout the day, 5,200 shares of G Willi-Food International exchanged hands as compared to its average daily volume of 29,000 shares. The stock ranged in a price between $7.19-$7.39 after having opened the day at $7.25 as compared to the previous trading day's close of $7.27.

G. Willi-Food International Ltd. develops, imports, exports, markets, and distributes various food products worldwide. G Willi-Food International has a market cap of $95.6 million and is part of the consumer goods sector. Shares are down 11.2% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate G Willi-Food International a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates G Willi-Food International as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from TheStreet Ratings analysis on WILC go as follows:

  • The revenue growth came in higher than the industry average of 5.0%. Since the same quarter one year prior, revenues slightly increased by 9.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • WILC's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 9.83, which clearly demonstrates the ability to cover short-term cash needs.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Food & Staples Retailing industry and the overall market, G WILLI-FOOD INTL LTD's return on equity is below that of both the industry average and the S&P 500.
  • G WILLI-FOOD INTL LTD's earnings per share declined by 11.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, G WILLI-FOOD INTL LTD increased its bottom line by earning $0.70 versus $0.50 in the prior year. For the next year, the market is expecting a contraction of 10.0% in earnings ($0.63 versus $0.70).

You can view the full analysis from the report here: G Willi-Food International Ratings Report

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

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.

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