Rock-Tenn Co (RKT): Today's Most Compelling Stock Buy

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SoTM Bull's Eye Report - Today's Most Compelling Buy
Monday, July 1, 2013

At StateoftheMarkets.com, we strive to "own the best and ignore the rest" in our equity portfolios. Toward this end, each day we search our database for a "top stock" (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical "set up" and a good entry point.

In short, when our equity team is looking to add a stock to one of our portfolios, the "bull's eye" stock shown below is generally their first choice.

 



Company


Symbol


Industry

Stock
Rating

YTD
% Gain
S.T.
Stop
Loss
Rock-Tenn Co RKT Paper Packaging 8.1 +40.01% $98.37

Why We Like The Stock:

Rock-Tenn Co (RKT) is our most compelling buy today due to the fact that it is a top rated stock (in terms of earnings strength and company/industry performance) with a positive technical set-up. While Materials stocks have had a very up and down year, Paper Packaging stocks like Packaging Corp of America (PKG), Sealed Air Corp (SEE) and RKT have been phenomenal. RKT is in a long-term uptrend dating back to June of 2012, pulling back modestly along the way. The stock tends to make higher highs and higher lows while operating slightly above the 50-day moving average. This morning, RKT opened on top of its 5- and 50-day moving average and subsequently skyrocketed +4.30%, crossing above all other major short-term moving averages. That is not to say that buying at current prices would be "missing the move," as RKT recently traded right around $107.50 in mid-June. And, judging by the strength of its uptrend, that is probably not the ceiling for this stock moving forward. We like RKT at current prices and would be buyers here.
We Would Be Buyers:

At the current price (~$104.18).

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Company Profile:

Rock-Tenn Company (RockTenn) is a North America's integrated manufacturer of corrugated and consumer packaging. The Company operates locations in the United States, Canada, Mexico, Chile, Argentina, Puerto Rico and China. The Company operates in three segments: Corrugated Packaging, consisting of its containerboard mills and its corrugated converting operations; Consumer Packaging, consisting of its coated and uncoated paperboard mills, consumer packaging converting operations and merchandising display facilities, and Recycling, which consists of its recycled fiber brokerage and collection operations. On June 22, 2012, the Company acquired Mid South Packaging LLC. On October 28, 2011, the Company acquired four entities doing business as GMI Group.

Stock Rating:

The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 - 10 with 10 being the highest.

Disclosure:

At the time of publication the editor and affiliated companies own the following positions: None

Note: Positions may be bought or sold while this publication is in circulation without notice.

  Rock-Tenn Co - Last 3 Months

  Rock-Tenn Co - Last 12 Months

  Rock-Tenn Co - Last 5 Years

 

 

The analysis and information in this report and on our website is for informational purposes only. No part of the material presented in this report or on our websites is intended as an investment recommendation or investment advice. Neither the information nor any opinion expressed nor any Portfolio constitutes a solicitation to purchase or sell securities or any investment program. The opinions and forecasts expressed are those of the editors of StateoftheMarkets.com and may not actually come to pass. The opinions and viewpoints regarding the future of the markets should not be construed as recommendations of any specific security nor specific investment advice. Stocks should always consult an investment professional before making any investment.

Any investment decisions must in all cases be made by the reader or by his or her investment adviser. Do NOT ever purchase any security without doing sufficient research. There is no guarantee that the investment objectives outlined will actually come to pass. All opinions expressed herein are subject to change without notice. Neither the editor, employees, nor any of their affiliates shall have any liability for any loss sustained by anyone who has relied on the information provided.

The analysis provided is based on both technical and fundamental research and is provided 'as is' without warranty of any kind, either expressed or implied. Although the information contained is derived from sources which are believed to be reliable, they cannot be guaranteed.

The information contained in our websites and StateoftheMarkets.com publications is provided by Ridge Publishing Co. Inc. (Ridge). One of the principals of Ridge, Mr. David Moenning, is also President and majority shareholder of Heritage Capital Management, Inc. (HCM) a Chicago-based money management firm. HCM is registered as an investment adviser. HCM also serves as a sub-advisor to other investment advisory firms. Ridge is a publisher and has not registered as an investment adviser. Neither HCM nor Ridge is registered as a broker-dealer.

Employees and affiliates of HCM and Ridge may at times have positions in the securities referred to and may make purchases or sales of these securities while publications are in circulation. Editors will indicate whether they or HCM has a position in stocks or other securities mentioned in any publication. The disclosures will be accurate as of the time of publication and may change thereafter without notice.

Index returns are price only and do not include the reinvestment of dividends. The S&P 500 is a stock market index containing the stocks of 500 large-cap corporations, most of which are US companies. The index is the most notable of the many indices owned and maintained by Standard & Poor's, a division of McGraw-Hill. S&P 500 is used in reference not only to the index but also to the 500 companies that have their common stock included in the index.

 

Investments in equities carry an inherent element of risk including the potential for significant loss of principal. Past performance is not an indication of future results.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas , Stocks , US Markets

Referenced Stocks: RTK

David Moenning


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