Lorillard Inc. (LO): Today's Favorite Consumer Goods Gainer

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 higher today making it today's featured consumer goods winner. The sector as a whole closed the day up 0.4%. By the end of trading, Lorillard rose 42 cents (1.1%) to $40.44 on average volume. Throughout the day, 2.8 million shares of Lorillard exchanged hands as compared to its average daily volume of 3.6 million shares. The stock ranged in a price between $40.07-$40.44 after having opened the day at $40.25 as compared to the previous trading day's close of $40.02. Other companies within the Consumer Goods sector that increased today were: Standard Register Company ( SR), up 30.2%, Central European Distribution ( CEDC), up 13.6%, American Apparel ( APP), up 12.9%, and Gaming Partners International Corporation ( GPIC), up 7%.
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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 $15.21 billion and is part of the tobacco industry. The company has a P/E ratio of 14.3, below the S&P 500 P/E ratio of 17.7. Shares are up 2.9% 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.

On the negative front, Tufco Technologies ( TFCO), down 7.7%, Mannatech ( MTEX), down 7%, Global-Tech Advanced Innovations ( GAI), down 6.9%, and Reeds ( REED), down 6.8%, were all laggards within the consumer goods sector with Carter's ( CRI) 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).

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