RAI, MO And PM, Pushing Consumer Goods Sector Downward

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.

All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 30 points (0.2%) at 16,949 as of Wednesday, Aug. 20, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,346 issues advancing vs. 1,589 declining with 185 unchanged.

The Consumer Goods sector currently sits down 0.2% versus the S&P 500, which is up 0.1%. A company within the sector that fell today was Canon ( CAJ), up 0.9%.

TheStreet would like to highlight 3 stocks pushing the sector lower today:

3. Reynolds American ( RAI) is one of the companies pushing the Consumer Goods sector lower today. As of noon trading, Reynolds American is down $0.48 (-0.8%) to $57.66 on light volume. Thus far, 513,265 shares of Reynolds American exchanged hands as compared to its average daily volume of 2.5 million shares. The stock has ranged in price between $57.51-$58.24 after having opened the day at $57.98 as compared to the previous trading day's close of $58.14.

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 $30.7 billion and is part of the tobacco industry. Shares are up 16.3% year-to-date as of the close of trading on Tuesday. Currently there are 3 analysts that rate Reynolds American a buy, 1 analyst rates it a sell, and 3 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 growth in earnings per share, increase in net income, notable return on equity, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Get the full Reynolds American Ratings Report now.

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2. As of noon trading, Altria Group ( MO) is down $0.24 (-0.6%) to $42.46 on light volume. Thus far, 1.4 million shares of Altria Group exchanged hands as compared to its average daily volume of 6.7 million shares. The stock has ranged in price between $42.37-$42.72 after having opened the day at $42.72 as compared to the previous trading day's close of $42.70.

Altria Group, Inc., through its subsidiaries, manufactures and sells cigarettes, smokeless products, and wine in the United States and internationally. Altria Group has a market cap of $84.3 billion and is part of the tobacco industry. Shares are up 11.2% year-to-date as of the close of trading on Tuesday. Currently there are 5 analysts that rate Altria Group a buy, no analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates Altria Group as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, growth in earnings per share, solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Get the full Altria Group Ratings Report now.

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

1. As of noon trading, Philip Morris International ( PM) is down $0.47 (-0.6%) to $84.91 on light volume. Thus far, 963,226 shares of Philip Morris International exchanged hands as compared to its average daily volume of 4.5 million shares. The stock has ranged in price between $84.65-$85.37 after having opened the day at $85.15 as compared to the previous trading day's close of $85.38.

Philip Morris International Inc., through its subsidiaries, manufactures and sells cigarettes and other tobacco products. The company's portfolio of brands include Marlboro, Merit, Parliament, Virginia Slims, L&M, Chesterfield, Bond Street, Lark, Muratti, Next, Philip Morris, and Red & White. Philip Morris International has a market cap of $132.8 billion and is part of the tobacco industry. Shares are down 2.0% year-to-date as of the close of trading on Tuesday. Currently there are 9 analysts that rate Philip Morris International a buy, 2 analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Philip Morris International as a hold. Among the primary strengths of the company is its expanding profit margins over time. At the same time, however, we also find weaknesses including deteriorating net income, weak operating cash flow and a generally disappointing performance in the stock itself. Get the full Philip Morris International Ratings Report now.

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

If you are interested in one of these 3 stocks, 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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