Rock-Tenn (RKT): Today's Featured Consumer Goods 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 Goods sector higher today making it today's featured consumer goods winner. The sector as a whole closed the day down 0.4%. By the end of trading, Rock-Tenn rose 80 cents (1.1%) to $73.14 on light volume. Throughout the day, 421,880 shares of Rock-Tenn exchanged hands as compared to its average daily volume of 890,500 shares. The stock ranged in a price between $71.77-$73.32 after having opened the day at $72.42 as compared to the previous trading day's close of $72.34. Other companies within the Consumer Goods sector that increased today were: Pilgrims Pride ( PPC), up 16.4%, Furniture Brands International ( FBN), up 11.8%, Elecsys Corporation ( ESYS), up 10.5%, and Entertainment Gaming Asia ( EGT), up 7.6%.
  • ACTIVE STOCK TRADERS: Get full access to Jim Cramer's thoughts for less than $3/week - sometimes before he says them on TV! Start with a 14-Day Free Trial.

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 $5.14 billion and is part of the consumer non-durables industry. The company has a P/E ratio of 19.2, 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 25.9% year to date as of the close of trading on Thursday. Currently there are seven analysts that rate Rock-Tenn a buy, one analyst rates it a sell, and two rate 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 16.9%, Dean Foods Company ( DF), down 10.9%, American Axle & Mfg Holdings ( AXL), down 10.4%, and Goodyear Tire & Rubber ( GT), down 10.4%, were all laggards within the consumer goods sector with Johnson Controls ( JCI) being today's consumer goods sector laggard.

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

Today's Weak On High Volume Stock: Rock-Tenn Company (RKT)

Today's Weak On High Volume Stock: Rock-Tenn Company (RKT)

Jefferies Recommends 21 Stocks for the Next Six Months and Beyond

Jefferies Recommends 21 Stocks for the Next Six Months and Beyond

Why Investors Should Consider Covered Calls in the Current Stock Market

Why Investors Should Consider Covered Calls in the Current Stock Market

Rock-Tenn, International Paper Offer Upside Says M.D. Sass Fund Manager

Rock-Tenn, International Paper Offer Upside Says M.D. Sass Fund Manager

Rock-Tenn (RKT) Stock Closed Down Following New Tax Rule Proposal

Rock-Tenn (RKT) Stock Closed Down Following New Tax Rule Proposal