Reynolds American Inc (RAI): Today's Featured Tobacco 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 Tobacco industry higher today making it today's featured tobacco winner. The industry as a whole closed the day up 0.7%. By the end of trading, Reynolds American rose $0.81 (1.6%) to $50.83 on average volume. Throughout the day, 2,319,663 shares of Reynolds American exchanged hands as compared to its average daily volume of 2,385,700 shares. The stock ranged in a price between $49.97-$50.94 after having opened the day at $49.97 as compared to the previous trading day's close of $50.02.

Reynolds American Inc., together with 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 $26.7 billion and is part of the consumer goods sector. Shares are up 0.1% year to date as of the close of trading on Thursday. 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.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the tobacco industry could consider PowerShares Dynamic Food & Beverage ( PBJ) while those bearish on the tobacco industry could consider PowerShares DB Agriculture Sht ETN ( ADZ).

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