Why Reynolds American (RAI) Stock Is Gaining Today

NEW YORK (TheStreet) -- Reynolds American (RAI) shares are up 1.6% to $57.56 on Tuesday after the cigarette maker reported adjusted earnings of 89 cents per share, 2 cents better than analyst expected, on revenue of $2.2 billion that was in line with analysts guidance for the quarter.

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TheStreet Ratings team rates REYNOLDS AMERICAN INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate REYNOLDS AMERICAN INC (RAI) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, 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 has had sub par growth in net income."

RAI ChartRAI data by YCharts

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

TheStreet's Whalen MacHale has details on Reynolds' Q2 results:


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