5. Orbital Sciences ( ORB) develops small and medium-class rockets and space systems for commercial and military customers. Second-quarter profit contracted 27% to $6.4 million, or 11 cents a share, as revenue expanded 25% to $338 million. The operating margin narrowed from 4.8% to 4.1%. Orbital's stock sells for a forward earnings multiple of 12, a book value multiple of 1.5 and a sales multiple of 0.7 -- 14%, 70% and 40% discounts to aerospace and defense industry averages. All eight analysts covering Orbital Sciences advise purchasing its shares.

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