Trade-Ideas: Rock-Tenn Company (RKT) Is Today's New Lifetime High Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Rock-Tenn Company ( RKT) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Rock-Tenn Company as such a stock due to the following factors:

  • RKT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $45.9 million.
  • RKT has traded 455,858 shares today.
  • RKT is trading at a new lifetime high.

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More details on RKT:

Rock-Tenn Company manufactures and sells corrugated and consumer packaging products in the United States, Canada, Mexico, Chile, Argentina, Puerto Rico, and China. The stock currently has a dividend yield of 1%. RKT has a PE ratio of 13.2. Currently there are 7 analysts that rate Rock-Tenn Company a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for Rock-Tenn Company has been 547,200 shares per day over the past 30 days. Rock-Tenn has a market cap of $8.2 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 1.69 and a short float of 1.6% with 2.59 days to cover. Shares are up 67.1% year to date as of the close of trading on Tuesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Rock-Tenn Company as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • RKT's revenue growth has slightly outpaced the industry average of 5.4%. Since the same quarter one year prior, revenues slightly increased by 6.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 135.80% and other important driving factors, this stock has surged by 71.12% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, RKT should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • ROCK-TENN CO reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, ROCK-TENN CO increased its bottom line by earning $3.45 versus $2.76 in the prior year. This year, the market expects an improvement in earnings ($7.11 versus $3.45).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Containers & Packaging industry. The net income increased by 140.7% when compared to the same quarter one year prior, rising from $58.20 million to $140.10 million.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Containers & Packaging industry and the overall market, ROCK-TENN CO's return on equity exceeds that of both the industry average and the S&P 500.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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