New Lifetime High Reached By Lorillard (LO)

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.

Trade-Ideas LLC identified Lorillard ( LO) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Lorillard as such a stock due to the following factors:

  • LO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $378.5 million.
  • LO has traded 9,980 shares today.
  • LO is trading at a new lifetime high.

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More details on LO:

Lorillard, Inc., through its subsidiaries, manufactures and sells cigarettes in the United States. It operates through two segments, Cigarettes and Electronic Cigarettes. The stock currently has a dividend yield of 3.8%. LO has a PE ratio of 21.3. Currently there is 1 analyst that rates Lorillard a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for Lorillard has been 4.0 million shares per day over the past 30 days. Lorillard has a market cap of $25.3 billion and is part of the consumer goods sector and tobacco industry. The stock has a beta of 0.58 and a short float of 1.9% with 1.31 days to cover. Shares are up 11.7% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Lorillard as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, good cash flow from operations, solid stock price performance and increase in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 23.1%. Since the same quarter one year prior, revenues slightly increased by 5.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The gross profit margin for LORILLARD INC is rather high; currently it is at 56.45%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 22.72% is above that of the industry average.
  • Net operating cash flow has increased to $841.00 million or 19.63% when compared to the same quarter last year. In addition, LORILLARD INC has also vastly surpassed the industry average cash flow growth rate of -31.46%.
  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Tobacco industry average. The net income increased by 1.5% when compared to the same quarter one year prior, going from $271.00 million to $275.00 million.

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