4-Star Stocks Poised to Pop: Lorillard
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, cigarette specialist Lorillard (NYS: LO) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Lorillard's business and see what CAPS investors are saying about the stock right now.
Lorillard facts
Headquarters (Founded) | Greensboro, N.C. (1760) |
Market Cap | $16.5 billion |
Industry | Industry |
Trailing-12-Month Revenue | $4.5 billion |
Management | Chairman/CEO Murray Kessler |
Return on Capital (Average, Past 3 Years) | 128.2% |
Cash/Debt | $1.9 billion / $2.6 billion |
Dividend Yield | 4.9% |
Competitors | Commonwealth Brands |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 95% of the 373 members who have rated Lorillard believe the stock will outperform the S&P 500 going forward.
Just last month, one of those Fools, Buffettinvestor, succinctly summed up the bull case for our community:
Still cheap even after its recent huge rally. Earns great returns on capital and owns the second most sold brand in the US (Newport), and the most sold brand of menthols. Cigarettes will not go away, for the same reason as alcohol won't go away. It's too ingrained in to world culture, and too much money and jobs are dependent on it.
If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong four-star rating, Lorillard may not be your top choice.
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At the time thisarticle was published Fool contributorBrian Pacamparaowns no position in any of the companies mentioned. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Fool'sdisclosure policyalways gets a perfect score.
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