3 Stocks Pushing The Food & Beverage Industry Lower

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The Food & Beverage industry as a whole closed the day down 0.2% versus the S&P 500, which was up 0.1%. Laggards within the Food & Beverage industry included Bridgford Foods ( BRID), down 1.6%, Seneca Foods ( SENEB), down 3.4%, Truett-Hurst Inc Class A ( THST), down 3.6%, Agria ( GRO), down 2.1% and Brown-Forman ( BF.A), down 1.9%.

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

Coca-Cola Femsa SAB de CV ( KOF) is one of the companies that pushed the Food & Beverage industry lower today. Coca-Cola Femsa SAB de CV was down $2.66 (2.4%) to $110.14 on light volume. Throughout the day, 25,787 shares of Coca-Cola Femsa SAB de CV exchanged hands as compared to its average daily volume of 71,600 shares. The stock ranged in price between $110.07-$114.00 after having opened the day at $113.21 as compared to the previous trading day's close of $112.80.

Coca-Cola FEMSA, S.A.B. de C.V., a franchise bottler, produces, markets, sells, and distributes Coca-Cola trademark beverages. Coca-Cola Femsa SAB de CV has a market cap of $23.8 billion and is part of the consumer goods sector. Shares are down 7.4% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates Coca-Cola Femsa SAB de CV a buy, 1 analyst rates it a sell, and 5 rate it a hold.

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TheStreet Ratings rates Coca-Cola Femsa SAB de CV as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from TheStreet Ratings analysis on KOF go as follows:

  • The revenue growth came in higher than the industry average of 3.2%. Since the same quarter one year prior, revenues rose by 21.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Beverages industry average. The net income increased by 2.7% when compared to the same quarter one year prior, going from $208.75 million to $214.45 million.
  • The current debt-to-equity ratio, 0.55, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.79 is somewhat weak and could be cause for future problems.
  • The gross profit margin for COCA-COLA FEMSA SAB DE CV is rather high; currently it is at 51.35%. Regardless of KOF'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 6.47% trails the industry average.
  • COCA-COLA FEMSA SAB DE CV's earnings per share improvement from the most recent quarter was slightly positive. 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, COCA-COLA FEMSA SAB DE CV reported lower earnings of $4.28 versus $5.11 in the prior year. This year, the market expects an improvement in earnings ($4.66 versus $4.28).

You can view the full analysis from the report here: Coca-Cola Femsa SAB de CV Ratings Report

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At the close, Agria ( GRO) was down $0.03 (2.1%) to $1.38 on light volume. Throughout the day, 18,088 shares of Agria exchanged hands as compared to its average daily volume of 31,400 shares. The stock ranged in price between $1.38-$1.41 after having opened the day at $1.41 as compared to the previous trading day's close of $1.41.

Agria has a market cap of $78.6 million and is part of the consumer goods sector. Shares are down 4.1% year-to-date as of the close of trading on Tuesday.

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Highlights from TheStreet Ratings analysis on GRO go as follows:

You can view the full analysis from the report here: Agria 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.

Truett-Hurst Inc Class A ( THST) was another company that pushed the Food & Beverage industry lower today. Truett-Hurst Inc Class A was down $0.19 (3.6%) to $5.05 on average volume. Throughout the day, 6,746 shares of Truett-Hurst Inc Class A exchanged hands as compared to its average daily volume of 6,500 shares. The stock ranged in price between $5.04-$5.44 after having opened the day at $5.44 as compared to the previous trading day's close of $5.24.

Truett-Hurst, Inc. produces, markets, and sells wines primarily in the United States and Canada. It produces a range of varietals of wine products, including Pinot Noir, Chardonnay, Sauvignon Blanc, Merlot, Cabernet Sauvignon, and Zinfandel. Truett-Hurst Inc Class A has a market cap of $19.6 million and is part of the consumer goods sector. Shares are up 25.7% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates Truett-Hurst Inc Class A a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Truett-Hurst Inc Class A as a sell. Among the areas we feel are negative, one of the most important has been very high debt management risk by most measures.

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Highlights from TheStreet Ratings analysis on THST go as follows:

  • The debt-to-equity ratio of 1.05 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with the unfavorable debt-to-equity ratio, THST maintains a poor quick ratio of 0.74, which illustrates the inability to avoid short-term cash problems.
  • 36.61% is the gross profit margin for TRUETT-HURST INC which we consider to be strong. Regardless of THST's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, THST's net profit margin of -3.56% significantly underperformed when compared to the industry average.
  • Compared to other companies in the Beverages industry and the overall market, TRUETT-HURST INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • In its most recent trading session, THST has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors.
  • TRUETT-HURST INC has improved earnings per share by 40.0% in the most recent quarter compared to the same quarter a year ago.

You can view the full analysis from the report here: Truett-Hurst Inc Class A 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.