Reynolds American

(

RAI

) pushed the Tobacco industry higher today making it today's featured tobacco winner. The industry as a whole was unchanged today. By the end of trading, Reynolds American rose 36 cents (0.9%) to $42.33 on average volume. Throughout the day, 2.3 million shares of Reynolds American exchanged hands as compared to its average daily volume of 2.5 million shares. The stock ranged in a price between $41.90-$42.38 after having opened the day at $42.06 as compared to the previous trading day's close of $41.97.

Reynolds American Inc., through its subsidiaries, manufactures and sells cigarette and other tobacco products in the United States. Reynolds American has a market cap of $23.99 billion and is part of the

consumer goods

sector. The company has a P/E ratio of 18.8, above the average tobacco industry P/E ratio of 18.5 and above the S&P 500 P/E ratio of 17.7. Shares are up 1.3% year to date as of the close of trading on Friday. Currently there is one analyst that rates Reynolds American a buy, one analyst rates it a sell, and nine rate it a hold.

TheStreet Ratings rates Reynolds American as a

buy

. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins, largely solid financial position with reasonable debt levels by most measures, notable return on equity and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the tobacco industry could consider

PowerShares Dynamic Food & Beverage

(

PBJ

) while those bearish on the tobacco industry could consider

PowerShares DB Agriculture Sht ETN

(

ADZ

).

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