Rayonier Inc. (RYN): Conglomerates' Featured Daily 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.

Rayonier ( RYN) pushed the Conglomerates sector lower today making it today's featured Conglomerates laggard. The sector as a whole closed the day down 1.1%. By the end of trading, Rayonier fell 98 cents (-1.6%) to $58.34 on average volume. Throughout the day, 808,581 shares of Rayonier exchanged hands as compared to its average daily volume of 772,800 shares. The stock ranged in price between $57.85-$59.50 after having opened the day at $59.42 as compared to the previous trading day's close of $59.32. Other companies within the Conglomerates sector that declined today were: Nautilus Marine Acquisition ( NMAR), down 10.7%, Lydall ( LDL), down 3.1%, Harbinger Group ( HRG), down 2.4%, and New Mountain Finance ( NMFC), down 2.1%.
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Rayonier, Inc. engages in the sale and development of real estate and timberland management, as well as in the production and sale of cellulose fibers in the United States, New Zealand, and Australia. Rayonier has a market cap of $7.38 billion and is part of the materials & construction industry. The company has a P/E ratio of 27.3, above the S&P 500 P/E ratio of 17.7. Shares are up 14.5% year to date as of the close of trading on Tuesday. Currently there are three analysts that rate Rayonier a buy, no analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates Rayonier as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, revenue growth, reasonable valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the conglomerates sector could consider SPDR Trust Series one ( SPY) while those bearish on the conglomerates sector could consider ProShares Short S&P 500 ( SH).

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