Based on the aggregated intelligence of 130,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, cigarette maker Reynolds American (NYSE:RAI) has earned a respected four-star ranking.

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

Reynolds facts 

Headquarters (founded)

Winston-Salem, N.C. (1875)

Market Cap

$11.44 billion



Trailing-12-Month Revenue

$8.85 million


CEO Susan Ivey (since 2004)

CFO Thomas Adams (since 2008)


Camel, Pall Mall, Winston, Salem, Kool

Return on Equity (average, last three years)


Dividend Yield



Altria Group (NYSE:MO)

Philip Morris International (NYSE:PM)

CAPS members bullish on RAI also bullish on

Johnson & Johnson (NYSE:JNJ)

General Electric (NYSE:GE)

CAPS members bearish on RAI also bearish on

Wal-Mart (NYSE:WMT)

Bank of America (NYSE:BAC)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS.

Over on CAPS, fully 409 of the 442 members who have rated Reynolds -- some 92.5% -- believe the stock will outperform the S&P 500 going forward. These bulls include slb0971 and All-Star BSHumphreyII, who is ranked in the top 20% of our community.

Three days ago, slb0971 tapped the stock as a stable income opportunity:

I have concerns about the declining revenue and somewhat excessive debt, but they are overshadowed by the juicy dividend. New products in the pipeline and expanding global market share should keep [Reynolds] on an even keel, and maybe even provide some decent growth. Despite absurd political and social policies, cigarettes aren't going away anytime soon - not in this country or any other.

In a pitch from last month, BSHumphreyII cited a recent move from rival Altria as reason to ride the Camel:

Altria just suddenly and inexplicably hiked their prices on their most popular brand, Marlboro Lights, by [71 cents] a pack well ahead of the SCHIP tax hike. Brand loyalty among smokers is traditionally strong, but it only goes so far … [Reynolds], who sells the main competitor to Marlboro Lights, Camel Lights, stands to gain a big bump in market share over this, so long as they don't follow suit. This will be reflected in their next couple quarterly statements, and should really help their stock out in the short- to mid-term.

What do you think about Reynolds, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 130,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Johnson & Johnson is a Motley Fool Income Investor pick. Wal-Mart is an Inside Value recommendation. The Fool's disclosure policy always gets a perfect score.