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.

Trade-Ideas LLC identified

Reynolds American

(

RAI

) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Reynolds American as such a stock due to the following factors:

  • RAI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $242.6 million.
  • RAI has traded 118,121 shares today.
  • RAI is trading at a new lifetime high.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in RAI with the Ticky from Trade-Ideas. See the FREE profile for RAI NOW at Trade-Ideas

More details on RAI:

Reynolds American Inc., through its subsidiaries, manufactures and sells cigarettes and other tobacco products in the United States. It operates through RJR Tobacco, American Snuff, and Santa Fe segments. The stock currently has a dividend yield of 3.4%. RAI has a PE ratio of 28. Currently there are 6 analysts that rate Reynolds American a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Reynolds American has been 3.3 million shares per day over the past 30 days. Reynolds American has a market cap of $42.3 billion and is part of the consumer goods sector and tobacco industry. The stock has a beta of 0.97 and a short float of 3.4% with 3.61 days to cover. Shares are up 23.2% year-to-date as of the close of trading on Monday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Reynolds American as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, increase in net income, expanding profit margins and good cash flow from operations. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 24.2%. Since the same quarter one year prior, revenues slightly increased by 6.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • 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. When compared to other companies in the Tobacco industry and the overall market, REYNOLDS AMERICAN INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Tobacco industry average. The net income increased by 7.2% when compared to the same quarter one year prior, going from $363.00 million to $389.00 million.
  • The gross profit margin for REYNOLDS AMERICAN INC is rather high; currently it is at 59.89%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 18.91% trails the industry average.
  • Net operating cash flow has increased to $1,080.00 million or 18.42% when compared to the same quarter last year. Despite an increase in cash flow, REYNOLDS AMERICAN INC's cash flow growth rate is still lower than the industry average growth rate of 30.89%.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.