New Lifetime High For Raytheon (RTN)
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
Trade-Ideas LLC identified
(
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Raytheon as such a stock due to the following factors:
- RTN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $177.3 million.
- RTN has traded 302,967 shares today.
- RTN is trading at a new lifetime high.
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More details on RTN:
Raytheon Company develops integrated products, services, and solutions in the areas of sensing; effects; command, control, communications, and intelligence; mission support; and cyber and information security worldwide. The stock currently has a dividend yield of 2.2%. RTN has a PE ratio of 15.7. Currently there are 8 analysts that rate Raytheon a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for Raytheon has been 1.7 million shares per day over the past 30 days. Raytheon has a market cap of $33.5 billion and is part of the industrial goods sector and aerospace/defense industry. The stock has a beta of 0.77 and a short float of 1.9% with 3.72 days to cover. Shares are up 2.3% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Raytheon as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in stock price during the past year, reasonable valuation levels and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- RTN's revenue growth has slightly outpaced the industry average of 0.4%. Since the same quarter one year prior, revenues slightly increased by 4.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.56, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.01, which illustrates the ability to avoid short-term cash problems.
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Aerospace & Defense industry and the overall market on the basis of return on equity, RAYTHEON CO has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- You can view the full Raytheon Ratings Report.
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