A battered team can be a dangerous team -- especially when it is a good team. That's because some of the best teams in history have risen up against adversity. When they are down and critics count them out, they dig deep. They take the calls of their early demise personally. They have something to prove and come out swinging. Those teams have fight in them -- they are the ones I like. They may not always win pretty, but they win. The Indianapolis Colts were down 17 points with less than five minutes to play yesterday on the road against the Houston Texans. They climbed back and took advantage of some poor play. Sage Rosenfels, the team's backup quarterback, had a pair of crucial fumbles that allowed the Colts to get back in the game. The Colts managed to squeeze out a 31-27 win and improve their record to 2-2. The Colts are not playing like they have in recent years and now they are at .500. They are well behind the division-leading Tennessee Titans (5-0), but they play the Titans twice and are within striking distance. If they can get things rolling again, the rest of the league could have its hands full. The Colts are hanging in there and finding ways to win. Yes, you could say the Texans imploded, but you do need to give the Horseshoes credit for forcing errors. Keeping with this theme, today I like Raytheon ( RTN). The company designs, develops and makes products and services for the government and commercial customers around the globe. It has six segments: Integrated Defense Systems, Intelligence and Information Systems, Missile Systems, Network Centric Systems, Space and Airborne Systems and Technical Services. Basically, Raytheon is one of the biggest aerospace and defense companies around.
There are concerns about the company's long-term growth, but in the short-term I think this company is real solid. And, those concerns are just that. Currently, the stock is trading at a steep discount. On Friday it closed at $53.17, just a little above its 52-week low of $52.37, which it hit the day before. That's quite a bit below its 12-month high of $67.49, which is hit at the end of February. All in all it's off 16.61% in the last year. There are other positives to point to. Its return on equity is 14.77%, which I like a lot. It has $2.55 billion in the bank and $2.48 billion in operating cash flow. It has steady institutional support at 79.60%. Lastly, I really like the fact that its forward price-to-earnings ratio is 11.87. That tells me that Wall Street is undervaluing this company. I think this stock is a winner and will help chew me chew up some yardage. Keep moving the chains!