Given the recent decline in stocks, we are looking for companies to buy. Today we're taking a look at Philip Morris (PM), Altria (MO), Lorillard (LO), and Reynolds American (RAI). The following are the stock ratings we are using:
Buy: Be Long
Neutral: No Position
Sell: Be Short
1. Reynolds American -- Neutral: The decline in book value/share and price/book value valuation.
Company vs. Industry
- Return on Assets (TTM): 7.69 vs. 3.44
- Return on Investment (TTM): 10.78 vs. 5.31
- Return on Equity (TTM): 20.97 vs. 15.38
Click to enlarge all images.
Book value/share is decreasing; the decline in book value/share is bearish.
Shares are trading near their 2012 peak; a decline in share price may occur in the coming months.
Price/sales is increasing; however, the valuation metric is well below its 2012 peak.
Price/book value is increasing and is near its 2012 peak; a decline in price/book value may occur in the coming months.
Philip Morris -- Neutral: The decline in book value/share and price/book value valuation.
Company vs. Industry
- Return on Assets (TTM): 25.36 vs. 3.44
- Return on Investment (TTM): 46.43 vs. 5.31
- Return on Equity (TTM): 427.97 vs. 15.38
Book value/share is declining; the decline in book value/share is bearish.
Shares are trading near their 2012 peak; a decline in share price may occur in the coming months.
Price/sales is increasing; however, the valuation metric is well below its 2012 peak.
Price/book value is increasing and is near its 2012 peak; a decline in price/book value may occur in the coming months.
Lorillard -- Neutral: The decline in book value/share and price/book value valuation.
Company vs. Industry
- Return on Assets (TTM): 31.44 vs. 3.44
- Return on Investment (TTM): 72.71 vs. 5.31
- Return on Equity (TTM): -- vs. 15.38
Book value/share is declining; the decline in book value/share is bearish.
Shares are trading near their 2012 peak; a decline in share price may occur in the coming months.
Price/sales is increasing; however, the valuation metric is well below its 2012 peak.
Price/book value is increasing and is near its 2012 peak; a decline in price/book value may occur in the coming months.
Altria -- Neutral: The decline in book value/share and price/book value valuation.
Company vs. Industry
- Return on Assets (TTM): 8.94 vs. 3.44
- Return on Investment (TTM): 11.49 vs. 5.31
- Return on Equity (TTM): 74.59 vs. 15.38
Book value/share is declining; the decline in book value/share is bearish.
Shares are trading near their 2012 peak; a decline in share price may occur in the coming months.
Price/sales is increasing; however, the valuation metric is well below its 2012 peak.
Price/book value is increasing and is near its 2012 peak; a decline in price/book value may occur in the coming months.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
