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

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.

Rock-Tenn ( RKT) pushed the Consumer Non-Durables industry higher today making it today's featured consumer non-durables winner. The industry as a whole closed the day down 0.3%. By the end of trading, Rock-Tenn rose $1.83 (2.9%) to $65.50 on heavy volume. Throughout the day, two million shares of Rock-Tenn exchanged hands as compared to its average daily volume of 883,300 shares. The stock ranged in a price between $64.29-$66.34 after having opened the day at $64.81 as compared to the previous trading day's close of $63.67. Other companies within the Consumer Non-Durables industry that increased today were: Energizer Holdings ( ENR), up 10.8%, Vera Bradley ( VRA), up 4.1%, Cereplast ( CERP), up 3.3%, and Frederick's of Hollywood Group ( FOH), up 3.2%.
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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 $4.79 billion and is part of the consumer goods sector. The company has a P/E ratio of 17.9, equal to the average consumer non-durables industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are up 10.3% year to date as of the close of trading on Monday. 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, solid stock price performance, attractive valuation levels, good cash flow from operations and compelling growth in net income. We feel these strengths outweigh the fact that the company shows low profit margins.

On the negative front, Deckers Outdoor Corporation ( DECK), down 8.4%, Tumi Holdings ( TUMI), down 4.9%, China Shengda Packaging Group ( CPGI), down 4.5%, and Titan International ( TWI), down 4%, were all laggards within the consumer non-durables industry with Lululemon Athletica ( LULU) being today's consumer non-durables industry laggard.

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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