Why Lorillard Is Poised to Outperform

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, cigarette specialist Lorillard has earned a respected four-star ranking.

With that in mind, let's take a closer look at Lorillard, and see what CAPS investors are saying about the stock right now.

Lorillard facts

Headquarters (founded)

Greensboro, N.C. (1760)

Market Cap

$15.4 billion

Industry

Tobacco

Trailing-12-Month Revenue

$4.6 billion

Management

Chairman/CEO Murray Kessler

CFO David Taylor

Return on Capital (average, past 3 years)

79%

Cash / Debt

$1.7 billion / $3.1 billion

Dividend Yield

5.3%

Competitors

Altria

Reynolds American


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 97% of the 402 members who have rated Lorillard believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those bulls, Dkaner99, brought the stock's hidden growth prospects to our community's attention:

[Lorillard] has a very strong 5+% Yield and with the new growth product [BLU-ECIGS ], they will significantly increase their EPS. The so called "experts" have not even factored in the expected revenue yet since there is not enough data for them to make such an [assessment]. From my research, these CIGS can't be kept on the shelf and they will significantly add to the top line sales growth and bottom line profit.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Lorillard 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 9 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.

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The article Why Lorillard Is Poised to Outperform originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks 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 Motley Fool has a disclosure policy.

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