Rock-Tenn Company (RKT): Today's Featured Consumer Goods Winner

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.

Rock-Tenn Company ( RKT) pushed the Consumer Goods sector higher today making it today's featured consumer goods winner. The sector as a whole closed the day down 0.6%. By the end of trading, Rock-Tenn Company rose $1.32 (1.4%) to $97.47 on average volume. Throughout the day, 1,050,156 shares of Rock-Tenn Company exchanged hands as compared to its average daily volume of 719,000 shares. The stock ranged in a price between $95.03-$97.86 after having opened the day at $96.38 as compared to the previous trading day's close of $96.15. Other companies within the Consumer Goods sector that increased today were: Tandy Brands Accessories ( TBAC), up 68.1%, Coldwater Creek ( CWTR), up 13.5%, Strattec Security Corporation ( STRT), up 11.0% and Herbalife ( HLF), up 6.7%.

Rock-Tenn Company manufactures and sells corrugated and consumer packaging products in the United States, Canada, Mexico, Chile, Argentina, Puerto Rico, and China. The company operates in three segments: Corrugated Packaging, Consumer Packaging, and Recycling. Rock-Tenn Company has a market cap of $7.2 billion and is part of the consumer non-durables industry. The company has a P/E ratio of 10.0, below the S&P 500 P/E ratio of 17.7. Shares are down 8.4% year to date as of the close of trading on Friday. Currently there are 7 analysts that rate Rock-Tenn Company a buy, 1 analyst rates it a sell, and 3 rate it a hold.

TheStreet 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, notable return on equity, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.

On the negative front, Verso Paper ( VRS), down 12.5%, SkyPeople Fruit Juice ( SPU), down 9.0%, Origin Agritech ( SEED), down 8.8% and Entertainment Gaming Asia ( EGT), down 8.5% , were all laggards within the consumer goods sector with Harman International Industries ( HAR) 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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