Standout Stocks in a Packed Tobacco Field

Tobacco has been on a roll, but don't smoke 'em all

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Standout Stocks in a Packed Tobacco Field

#4: Lorillard

Lorillard Standout Stocks in a Packed Tobacco FieldThough the bottom line has been getting reliably bigger, falling short of estimated earnings in two of the last three quarters doesn’t make Lorillard (NYSE:LO) a high-odds bet for its upcoming earnings announcement. The pros are looking for a profit of $2.32 per share, compared to $2.05 for the same quarter a year earlier. Not only is that 13% profit improvement a tall order, it’s made even taller in that it would be a record per-share profit. It feels like a recipe for disappointment.

Worse, net margins have been getting steadily smaller since 2007 … not a sign of bad luck or a poor economic environment, but just a sign of the times for tobacco companies.

Side note: If the e-cigarette ever does catch on, Lorillard’s fortune could change. The recent acquisition of the Blu Cigs company makes Lorillard the frontrunner of that race. Blu Cigs only did $30 million in sales last year, but that number is getting bigger, fast.


Article printed from InvestorPlace Media, http://investorplace.com/2012/07/standout-stocks-in-a-packed-tobacco-field/.

©2014 InvestorPlace Media, LLC

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