Lorillard Inc. (LO): Today's Featured Consumer Goods Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Lorillard ( LO) pushed the Consumer Goods sector lower today making it today's featured Consumer Goods laggard. The sector as a whole closed the day down 0.3%. By the end of trading, Lorillard fell $1.77 (-1.4%) to $124.81 on light volume. Throughout the day, 720,699 shares of Lorillard exchanged hands as compared to its average daily volume of 982,700 shares. The stock ranged in price between $124.41-$126.71 after having opened the day at $126.71 as compared to the previous trading day's close of $126.58. Other companies within the Consumer Goods sector that declined today were: Shiner International ( BEST), down 19.4%, Enova Systems ( ENA), down 16.7%, Verso Paper ( VRS), down 13.5%, and Calavo Growers ( CVGW), down 11.8%.

Lorillard, Inc., through its subsidiaries, manufactures and sells cigarettes in the United States. It markets approximately 43 product offerings in various brand names, including Newport, Kent, True, Maverick, and Old Gold. Lorillard has a market cap of $16.39 billion and is part of the tobacco industry. The company has a P/E ratio of 15.7, above the average tobacco industry P/E ratio of 15.5 and below the S&P 500 P/E ratio of 17.7. Shares are up 11% year to date as of the close of trading on Tuesday. Currently there are three analysts that rate Lorillard a buy, no analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates Lorillard as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year, growth in earnings per share and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, G-III Apparel Group ( GIII), up 10%, Tianli Agritech ( OINK), up 9.1%, American Lorain ( ALN), up 7.4%, and Reeds ( REED), up 6%, were all gainers within the consumer goods sector with General Motors ( GM) being today's featured consumer goods sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the consumer goods sector could consider iShares Dow Jones US Cons Goods ( IYK) while those bearish on the consumer goods sector could consider ProShares Ultra Sht Consumer Goods ( SZK).

FREE from Real Money's Jim Cramer: Winners and Losers Election 2012 - Steps to take NOW so you can profit no matter who is in charge! Free download now.
null

If you liked this article you might like

Reynolds Drops on Lorillard Debt; Stocks End Mixed on Jobs Report

Lorillard (LO) Stock Continues To Gain Following FTC Approval of Merger with Reynolds American

Stocks Extend Gains, Undeterred by Higher Dollar and Lower Oil

FTC Clears Reynolds to Inhale Lorillard for $27B by End of June

Lorrilard (LO) Stock Rising on Approval of Reynolds Merger