Reynolds American Inc (RAI): Today's Featured Consumer Goods Laggard

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.

Reynolds American ( RAI) pushed the Consumer Goods sector lower today making it today's featured Consumer Goods laggard. The sector as a whole closed the day down 0.2%. By the end of trading, Reynolds American fell $0.56 (-1.1%) to $48.78 on average volume. Throughout the day, 1,194,921 shares of Reynolds American exchanged hands as compared to its average daily volume of 1,505,100 shares. The stock ranged in price between $48.67-$49.07 after having opened the day at $48.93 as compared to the previous trading day's close of $49.34. Other companies within the Consumer Goods sector that declined today were: Castle Brands Incorporated ( ROX), down 10.6%, Swisher Hygiene ( SWSH), down 9.0%, Natuzzi SPA ( NTZ), down 7.7% and Summer Infant ( SUMR), down 7.7%.

Reynolds American Inc., through its subsidiaries, manufactures and sells cigarette and other tobacco products in the United States. The company operates through RJR Tobacco, American Snuff, and Santa Fe segments. Reynolds American has a market cap of $27.0 billion and is part of the tobacco industry. Shares are up 19.6% year to date as of the close of trading on Friday. Currently there are 2 analysts that rate Reynolds American a buy, 1 analyst rates it a sell, and 7 rate it a hold.

TheStreet Ratings rates Reynolds American as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, expanding profit margins, increase in stock price during the past year and growth in earnings per share. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the positive front, Tianli Agritech ( OINK), up 21.0%, Ever-Glory International Group ( EVK), up 10.6%, Truett-Hurst ( THST), up 9.1% and S&W Seed Company ( SANW), up 5.7% , were all gainers within the consumer goods sector with Deckers Outdoor Corporation ( DECK) being today's featured consumer goods sector leader.

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).

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

If you liked this article you might like

How A Girl from India Came to Rule JPM's North America M&A Group

From the Marlboro Man to Vaping, Here Are the Events that Shaped Big Tobacco

Cramer: The Value of Overvalued Stocks

Bored With Cream and Sugar? You Can Now Add Weed to Your Morning Joe

There Are More Novel Ways of Delivering Nicotine: FDA