This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Playing for the Real Money in Homeland Defense

Lockheed, with its shares down 0.8% in the past year, has the relatively weakest stock of the trio. That compares with a nearly 37% jump enjoyed by Accenture and a 13.5% increase in Computer Sciences shares. For that reason, some analysts are bullish on Lockheed, calling the world's largest defense contractor's shares undervalued.

Shares of Lockheed were up 38 cents, or 0.79%, to $48.61 in recent trading Wednesday; Accenture shares were down 17 cents, or 0.72%, to $23.56; and shares of Computer Sciences were up 11 cents, or 0.26%, to $42.80.

On Tuesday, Legg Mason analyst Troy Lahr initiated coverage on Lockheed with a buy rating and included it on the firm's list of compelling ideas. Lahr noted that the stock is trading at an enterprise value-to-earnings ratio of 8, below the median multiple of the S&P 500 of 11.

Last month, meanwhile, Jefferies analyst Sam Pearlstein noted that several near-term contract competitions, including US-Visit, will determine whether Lockheed will have to raise 2005 revenue and earnings guidance in July, when it reports its second-quarter results. He has a buy rating on the stock and his firm hasn't done any banking with Lockheed.

Ultimately, though, the US-Visit contract would be most important to Computer Science's future, analysts said.

"CSC, I think, has less significant long-term prospects in its commercial consulting and outsourcing business, whereas Accenture has more opportunity in consulting and business-process outsourcing that makes it less reliant on winning these large federal contracts," said Bernstein analyst Rod Bourgeois, who has an outperform rating on Accenture and market perform rating on Computer Sciences.

2 of 4

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs