Lorillard Inc. (LO): Today's Featured Tobacco 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.

Lorillard ( LO) pushed the Tobacco industry higher today making it today's featured tobacco winner. The industry as a whole closed the day down 0.1%. By the end of trading, Lorillard rose 71 cents (1.9%) to $39.12 on average volume. Throughout the day, 4.1 million shares of Lorillard exchanged hands as compared to its average daily volume of 3.7 million shares. The stock ranged in a price between $38.43-$39.14 after having opened the day at $38.43 as compared to the previous trading day's close of $38.41.
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Lorillard, Inc. manufactures and sells cigarettes in the United States. The company operates through two segments, Cigarettes and Electronic Cigarettes. The Cigarettes segment manufactures and sells cigarettes. Lorillard has a market cap of $14.65 billion and is part of the consumer goods sector. The company has a P/E ratio of 13.7, below the S&P 500 P/E ratio of 17.7. Shares are down 1.2% year to date as of the close of trading on Monday. Currently there are four analysts that rate Lorillard a buy, one analyst rates it a sell, and four 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, growth in earnings per share, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the tobacco industry could consider PowerShares Dynamic Food & Beverage ( PBJ) while those bearish on the tobacco industry could consider PowerShares DB Agriculture Sht ETN ( ADZ).

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