Reynolds American Inc.
) hit a new 52-week high of $56.87 on May 8. The stock's share
price has been rising ever since it reported solid first-quarter
2014 results on Apr 23.
Its share price closed at $56.57on May 8, recording a
healthy return of 14.8% year-to-date. The company's long-term
estimated earnings per share growth rate is 2.9%. Average volume of
shares traded over the last three months came in at approximately
Solid First-Quarter Performance
Although Reynold first quarter fiscal 2014 earnings per share
missed estimates the company posted strong top-lines which
increased 2.8% year over year on the back of market share gains by
it premium brands. Sales inched past the Zacks Consensus Estimate
Although volumes declined and tough industrial conditions
prevailed, the company's flagship Camel and Pall Mall brands showed
considerable strength and reported substantial market share gain
during the quarter.
Market share of the company's popular smokeless brands Grizzly
and Natural American Spirit also increased during the quarter. The
company is on track with investment in smokeless and moist snuff
products to meet the changing preferences of adult tobacco
consumers. Furthermore, the company's advancement in the
e-cigarette category with its brand Vuse is encouraging. The
company has made heavy investments in the brand and plans to expand
its distribution nationally in fiscal 2014.
Reynolds American maintained the fiscal 2014 guidance. The
company expects earnings in the range of $3.30 to $3.45, up 3.5% to
8.2% from fiscal 2013 earnings of $3.19.
Other Stocks to Consider
Reynolds American has a Zacks Rank #3 (Hold). Another cigarette
company stock worth considering is
Philip Morris International Inc.
) with a Zacks Rank #2 (Buy). Other stocks in the consumer staples
sector that are performing well at the current level include
B&G Foods Inc.
Mondelez International Inc.
) carrying the same Zacks Rank as Philip Morris.
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