4-Star Stocks Poised to Pop: Reynolds American
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, tobacco products Reynolds American (NYS: RAI) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Reynolds' business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||Winston-Salem, N.C. (1875)|
|Market Cap||$23.1 billion|
|Trailing-12-Month Revenue||$8.5 billion|
|Management||CEO Daniel Delen (since 2011)|
CFO Thomas Adams (since 2008)
|Return on Equity (Average, Past 3 Years)||19.2%|
|Cash/Debt||$2 billion / $3.2 billion|
Philip Morris USA
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 93% of the 634 members who have rated Reynolds believe the stock will outperform the S&P 500 going forward.
With a dividend yield at nearly 6%, this number has to be expected to fall as investors seek out investments paying high rates of interest ... especially investments that also include an ownership stake in the company itself, like stocks. With some international exposure in smoker-infested Europe, brand names like Camel and Winston (and a slew of others), and having penetrated very well into the growing smokeless tobacco business, Reynolds is poised to very well against the market in the years to come.
Of course, despite its four-star rating, Reynolds may not be your top choice. If that's the case, we've compiled a special free report for investors called "Secure Your Future With 11 Rock-Solid Dividend Stocks," which uncovers several other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.
Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.
At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.
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