3 Stocks Pushing The Food & Beverage Industry Lower

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.

The Food & Beverage industry as a whole closed the day down 1.0% versus the S&P 500, which was down 1.1%. Laggards within the Food & Beverage industry included BRASILAGRO - CIA Bras de Prop Agricolas ( LND), down 1.6%, Tofutti Brands ( TOF), down 2.1%, Le Gaga Holdings ( GAGA), down 3.1%, Tianli Agritech ( OINK), down 3.1% and Rocky Mountain Chocolate ( RMCF), down 2.1%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today:

Snyders-Lance ( LNCE) is one of the companies that pushed the Food & Beverage industry lower today. Snyders-Lance was down $0.57 (2.1%) to $26.24 on light volume. Throughout the day, 131,252 shares of Snyders-Lance exchanged hands as compared to its average daily volume of 200,600 shares. The stock ranged in price between $26.21-$26.80 after having opened the day at $26.55 as compared to the previous trading day's close of $26.81.

Snyder's-Lance, Inc. manufactures, distributes, markets, and sells snack food products in the United States. Snyders-Lance has a market cap of $1.9 billion and is part of the consumer goods sector. Shares are down 5.7% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst who rates Snyders-Lance a buy, no analysts rate it a sell, and 4 rate it a hold.

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TheStreet Ratings rates Snyders-Lance 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, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from TheStreet Ratings analysis on LNCE go as follows:

  • LNCE's revenue growth has slightly outpaced the industry average of 3.1%. Since the same quarter one year prior, revenues slightly increased by 4.4%. 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.
  • The current debt-to-equity ratio, 0.53, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.02, which illustrates the ability to avoid short-term cash problems.
  • SNYDERS-LANCE INC's earnings per share declined by 14.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SNYDERS-LANCE INC increased its bottom line by earning $1.13 versus $0.86 in the prior year. This year, the market expects an improvement in earnings ($1.25 versus $1.13).
  • 37.42% is the gross profit margin for SNYDERS-LANCE INC which we consider to be strong. Regardless of LNCE's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 3.84% trails the industry average.
  • 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. In comparison to the other companies in the Food Products industry and the overall market, SNYDERS-LANCE INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.

You can view the full analysis from the report here: Snyders-Lance 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, Rocky Mountain Chocolate ( RMCF) was down $0.27 (2.1%) to $12.70 on average volume. Throughout the day, 9,200 shares of Rocky Mountain Chocolate exchanged hands as compared to its average daily volume of 10,600 shares. The stock ranged in price between $12.64-$12.95 after having opened the day at $12.95 as compared to the previous trading day's close of $12.97.

Rocky Mountain Chocolate Factory, Inc. operates as a confectionery franchisor, manufacturer, and retail operator. Rocky Mountain Chocolate has a market cap of $80.3 million and is part of the consumer goods sector. Shares are up 11.5% year-to-date as of the close of trading on Wednesday.

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TheStreet Ratings rates Rocky Mountain Chocolate 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, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from TheStreet Ratings analysis on RMCF go as follows:

  • RMCF's revenue growth has slightly outpaced the industry average of 3.1%. Since the same quarter one year prior, revenues slightly increased by 7.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.31, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.47, which illustrates the ability to avoid short-term cash problems.
  • ROCKY MOUNTAIN CHOC FACT INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, ROCKY MOUNTAIN CHOC FACT INC increased its bottom line by earning $0.69 versus $0.24 in the prior year. This year, the market expects an improvement in earnings ($0.86 versus $0.69).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Food Products industry. The net income increased by 1447.9% when compared to the same quarter one year prior, rising from $0.10 million to $1.49 million.
  • 35.89% is the gross profit margin for ROCKY MOUNTAIN CHOC FACT INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 13.43% is above that of the industry average.

You can view the full analysis from the report here: Rocky Mountain Chocolate 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.

Le Gaga Holdings ( GAGA) was another company that pushed the Food & Beverage industry lower today. Le Gaga Holdings was down $0.11 (3.1%) to $3.46 on heavy volume. Throughout the day, 183,919 shares of Le Gaga Holdings exchanged hands as compared to its average daily volume of 11,400 shares. The stock ranged in price between $3.15-$3.70 after having opened the day at $3.56 as compared to the previous trading day's close of $3.57.

Le Gaga Holdings has a market cap of $156.6 million and is part of the consumer goods sector. Shares are up 10.2% year-to-date as of the close of trading on Wednesday.

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

Highlights from TheStreet Ratings analysis on GAGA go as follows:

You can view the full analysis from the report here: Le Gaga Holdings 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.

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