Rock-Tenn (RKT): Today's Featured Consumer Non-Durables Laggard

Rock-Tenn ( RKT) pushed the Consumer Non-Durables industry lower today making it today's featured Consumer Non-Durables laggard. The industry as a whole closed the day up 0.6%. By the end of trading, Rock-Tenn fell $1.37 (-2.2%) to $59.94 on average volume. Throughout the day, 660,457 shares of Rock-Tenn exchanged hands as compared to its average daily volume of 779,200 shares. The stock ranged in price between $59.44-$61.08 after having opened the day at $61.08 as compared to the previous trading day's close of $61.31. Other companies within the Consumer Non-Durables industry that declined today were: ACCO Brands ( ACCO), down 14.7%, STR Holdings ( STRI), down 10.4%, Cereplast ( CERP), down 8.2%, and Heelys ( HLYS), down 7.4%.

Rock-Tenn Company manufactures and sells containerboard, recycled paperboard, bleached paperboard, packaging products, and merchandising displays in the United States, Canada, Mexico, Chile, Argentina, Puerto Rico, and China. Rock-Tenn has a market cap of $4.36 billion and is part of the consumer goods sector. The company has a P/E ratio of 16.3, equal to the average consumer non-durables industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 6.8% year to date as of the close of trading on Wednesday. Currently there are eight analysts that rate Rock-Tenn a buy, one analyst rates it a sell, and one rates it a hold.

TheStreet Ratings rates Rock-Tenn as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income, attractive valuation levels, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, Mobile Mini ( MINI), up 23.3%, Elizabeth Arden ( RDEN), up 13%, Tandy Brands Accessories ( TBAC), up 10.8%, and Exceed Company ( EDS), up 9%, were all gainers within the consumer non-durables industry with Avon Products ( AVP) being today's featured consumer non-durables industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the consumer non-durables industry could consider Consumer Staples Select Sector SPDR ( XLP) while those bearish on the consumer non-durables industry could consider ProShares Ultra Sht Consumer Goods ( SZK).
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