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

Rock-Tenn Company ( 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 0.2%. By the end of trading, Rock-Tenn Company fell $1.47 (-2%) to $73.59 on average volume. Throughout the day, 812,937 shares of Rock-Tenn Company exchanged hands as compared to its average daily volume of 581,600 shares. The stock ranged in price between $73.47-$74.98 after having opened the day at $74.64 as compared to the previous trading day's close of $75.06. Other companies within the Consumer Non-Durables industry that declined today were: Crocs ( CROX), down 9.7%, Deckers Outdoor Corporation ( DECK), down 5.5%, Lululemon Athletica ( LULU), down 2.9%, and Quiksilver ( ZQK), down 2.8%.
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Rock-Tenn Company manufactures and sells corrugated and consumer packaging products in the United States, Canada, Mexico, Chile, Argentina, Puerto Rico, and China. Rock-Tenn Company has a market cap of $5.3 billion and is part of the consumer goods sector. The company has a P/E ratio of 21.6, above the S&P 500 P/E ratio of 17.7. Shares are up 7.4% year to date as of the close of trading on Tuesday. Currently there are six analysts that rate Rock-Tenn Company a buy, one analyst rates it a sell, and two rate it a hold.

TheStreet Ratings rates Rock-Tenn Company as a buy. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, largely solid financial position with reasonable debt levels by most measures, notable return on equity and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, Tumi Holdings ( TUMI), up 6.9%, American Apparel ( APP), up 6.7%, G-III Apparel Group ( GIII), up 6.6%, and Northern Technologies International ( NTIC), up 6.5%, were all gainers within the consumer non-durables industry with Sealed Air Corporation ( SEE) 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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