Universal Corporation (UVV): Today's Featured Tobacco Winner

The tobacco industry closed the day up 0.4%. Universal Corporation ( UVV) was today's featured tobacco winner. Universal Corporation rose $1.14 (2.8%) to $41.76 on average volume. Throughout the day, 321,436 shares of Universal Corporation exchanged hands as compared to its average daily volume of 281,500 shares.

Universal Corporation, through its subsidiaries, operates as a leaf tobacco merchant and processor primarily in North America, South America, Africa, Europe, and Asia. Universal Corporation has a market cap of $930.2 million and is part of the consumer goods sector. The company has a P/E ratio of 7.9, equal to the average tobacco industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are down 0.2% year to date as of the close of trading on Friday.

TheStreet Ratings rates Universal as a buy. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

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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