Raytheon, Raymond James, Perrigo Hit Highs

Raytheon, Raymond James and Perrigo achieved 52-week highs on Wednesday.
By Jake Lynch ,

BOSTON (TheStreet) -- U.S. stock-market indices declined Wednesday after the Institute for Supply Management gave a read on service industries that missed expectations. Here are three stocks that achieved 52-week highs amid the pessimism.

3. Raymond James Financial

(RJF) - Get Report

rose 1.4% to $26.73, despite news that FINRA is imposing a $12 million fine on the company for raiding A.G. Edwards branches following news of Edwards' acquisition by

Wachovia

, now part of

Wells Fargo

(WFC) - Get Report

. Raymond James has restated its quarterly results to reflect the penalty.

The numbers

: Including the FINRA fine, fiscal first-quarter profit dropped 30% to $43 million, or 35 cents a share, as revenue inched up 1% to $703 million. The company's operating margin narrowed from 18% to 13%. We give Raymond James a financial-strength score of 6.9 out of 10.

The stock

: We rate Raymond James "buy." Its stock advanced 33% during the past year, beating the

Dow Jones Industrial Average

and

S&P 500 Index

. The shares are cheap relative to those of capital markets peers based on trailing earnings, projected earnings, book value and sales. The company's growth score of 3.2 weakens its overall rating.

2. Perrigo

(PRGO) - Get Report

climbed 0.8% to $46.27. Management at the drugmaker increased its quarterly earnings guidance yesterday.

The numbers

: Fiscal second-quarter profit more than doubled to $51 million, or 57 cents a share, as revenue increased 8.6% to $583 million. Perrigo's operating margin extended from 12% to 17%. The company possesses ample liquidity, evident in its quick ratio of 1.2. Its 0.9 debt-to-equity ratio indicates a balanced capital structure.

The stock

: We rate Perrigo "buy." Its stock doubled during the past year, beating major U.S. indices and earning a performance score of 8.7 out of 10. The shares are inexpensive relative to those of pharmaceutical peers based on sales and cash flow. They are costly when considering trailing earnings, projected earnings and book value.

1. Raytheon

(RTN) - Get Report

inched up 0.2% to $54.82 on news that the U.S. Air Force awarded the defense company a $170 million contract for Infrared-Guided Maverick Missiles.

The numbers

: Fourth-quarter net income increased 20% to $504 million and earnings per share climbed 27% to $1.30, boosted by a lower share count. Revenue grew 9.5% to $6.7 billion. Raytheon's operating margin widened from 11% to 12%. The company holds $2.6 billion of cash and $2.3 billion of debt.

The stock

: We rate Raytheon "buy." Its stock appreciated 17% during the past year, less than major U.S. indices. The shares are undervalued relative to those of aerospace and defense peers based on all of our valuation measures, including trailing earnings, projected earnings, book value, sales and cash flow.

-- Reported by Jake Lynch in Boston.

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