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Dean Foods Company (DF): Today's Featured Consumer Goods Laggard

Tickers in this article: DF

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

Dean Foods Company ( DF) pushed the Consumer Goods sector lower today making it today's featured Consumer Goods laggard. The sector as a whole closed the day up 0.6%. By the end of trading, Dean Foods Company fell $0.23 (-1.2%) to $18.62 on light volume. Throughout the day, 2,188,929 shares of Dean Foods Company exchanged hands as compared to its average daily volume of 3,319,800 shares. The stock ranged in price between $18.56-$18.90 after having opened the day at $18.87 as compared to the previous trading day's close of $18.85. Other companies within the Consumer Goods sector that declined today were: Central European Distribution ( CEDC), down 15.2%, Clearwater Paper ( CLW), down 8.7%, Domtar ( UFS), down 8.1% and Revlon ( REV), down 6.7%.

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Dean Foods Company, a food and beverage company, processes and distributes milk, other fluid dairy products, and plant-based beverages. The company operates in two segments, Fresh Dairy Direct and WhiteWave. Dean Foods Company has a market cap of $3.6 billion and is part of the food & beverage industry. The company has a P/E ratio of 22.4, above the S&P 500 P/E ratio of 17.7. Shares are up 14.2% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Dean Foods Company as a hold. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and notable return on equity. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, poor profit margins and weak operating cash flow.

On the positive front, Federal-Mogul ( FDML), down 21.5%, Gruma S.A.B. de C.V ( GMK), down 12.2%, Orient Paper ( ONP), down 9.3% and Winnebago Industries ( WGO), down 7.0% , were all gainers within the consumer goods sector with Ford Motor ( F) being today's featured consumer goods sector leader.

For investors not wanting singular stock exposure, 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).