8. Lorillard (LO - Get Report) sells cigarettes, including the Newport brand. Second-quarter net income dropped 8.1% to $263 million, but earnings per share inched up 1.2% to $1.73. Revenue ascended 0.3%. The operating margin narrowed from 44% to 43%. Lorillard has $1.8 billion of cash and $1.8 billion of debt. Its stock trades at a trailing earnings multiple of 12 and a forward earnings multiple of 11, 15% and 18% discounts to peer averages. Its PEG ratio of 0.9 signals a 10% discount to fair value. A median target of $88.62 implies 17% of potential upside.