Reynolds American Inc (RAI): 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.

Reynolds American ( RAI) pushed the Consumer Goods sector higher today making it today's featured consumer goods winner. The sector as a whole closed the day up 0.9%. By the end of trading, Reynolds American rose $0.87 (1.8%) to $48.51 on average volume. Throughout the day, 2,561,597 shares of Reynolds American exchanged hands as compared to its average daily volume of 2,282,400 shares. The stock ranged in a price between $47.62-$48.66 after having opened the day at $47.72 as compared to the previous trading day's close of $47.64. Other companies within the Consumer Goods sector that increased today were: Patrick Industries ( PATK), up 17.5%, Tesla Motors ( TSLA), up 8.4%, Hyster-Yale Materials Handling Inc Class A ( HY), up 8.4% and Quantum Fuel Systems Technologies Worldwide ( QTWW), up 7.3%.

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 $25.7 billion and is part of the tobacco industry. Shares are down 4.2% year to date as of the close of trading on Wednesday. Currently there are 3 analysts that rate Reynolds American a buy, 1 analyst rates it a sell, and 8 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 impressive record of earnings per share growth, compelling growth in net income, notable return on equity, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the negative front, American Apparel ( APP), down 32.0%, China Xiniya Fashion ( XNY), down 6.2%, S&W Seed Company ( SANW), down 4.3% and Forward Industries ( FORD), down 4.2%.

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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