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!

5 Picks for 2012 in Aerospace, Defense

Stocks in this article: BA GD HON HXL ESLT FDX

NEW YORK ( TheStreet) - The global aerospace and defense sector is seen having a stable 2012 outlook, as per the estimates of Fitch Ratings. For the commercial segment, the rating company projects deliveries from Boeing (BA) to increase by almost 15% in 2012, contributing to 20% revenue growth. Further ahead, it projects a 9% growth in deliveries in 2013.

Based on average estimates of analysts polled by Bloomberg, these five stocks have potential upsides ranging from 12% to 24%, with average buy and average hold ratings of 67% and 29%, respectively.

These stocks are listed in ascending order of upside potential.

5. The Boeing Company (BA), builds and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight technology and launch systems and services. The company also provides numerous military and commercial airline support services.

For the third quarter of fiscal year 2011, Boeing reported revenue of $17.72 billion, up 4%, compared to the third quarter of 2010, and backlog grew 2.8% sequentially to $332 billion, which includes $26 billion in orders during the third quarter alone.

Boeing recorded third quarter net income of $1.1 billion or $1.46 per diluted share, up 31% compared to net income of $837 million or $1.12 per diluted share during the third quarter of 2010.

For the year 2011 Boeing has increased its earnings per share guidance in the range $4.30 to $4.40 per share.

In December 2011, FedEx (FDX) signed an agreement with Boeing to purchase 27 new 767-300F aircraft, with three arriving in fiscal 2014 and six per year in fiscal 2015 through 2018. Furthermore, the company declared a quarterly dividend of 44 cents per share, an increase of 5% from the previous regular quarterly dividend, payable March 2.

Of the 33 analysts covering the stock, 76% recommend a buy and 21% suggest a hold. The stock's average 12-month price target is $81.95, or 11.7% above the current price, according to a Bloomberg consensus.

1 of 5

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 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

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