L-3 Communications Holdings Inc (LLL): Today's Featured Aerospace/Defense Loser

L-3 Communications Holdings ( LLL) pushed the Aerospace/Defense industry lower today making it today's featured Aerospace/Defense loser. The industry as a whole closed the day up 1.1%. By the end of trading, L-3 Communications Holdings fell $1.61 (-2.2%) to $71.03 on average volume. Throughout the day, 748,504 shares of L-3 Communications Holdings exchanged hands as compared to its average daily volume of 688,800 shares. The stock ranged in price between $69.48-$71.65 after having opened the day at $69.60 as compared to the previous trading day's close of $72.64. Another company within the Aerospace/Defense industry that decreased today was Taser International ( TASR), down 4.2%.

L-3 Communications Holdings, Inc. provides command, control, communications, intelligence, surveillance, and reconnaissance (C3ISR) systems; aircraft modernization and maintenance; and government services in the United States and internationally. L-3 Communications Holdings has a market cap of $7.04 billion and is part of the industrial goods sector. The company has a P/E ratio of 7.9, equal to the average aerospace/defense industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 7.7% year to date as of the close of trading on Tuesday. Currently there are two analysts that rate L-3 Communications Holdings a buy, one analyst rates it a sell, and 10 rate it a hold.

TheStreet Ratings rates L-3 Communications Holdings as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, growth in earnings per share and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, AAR ( AIR), up 11.7%, CPI Aerostructures ( CVU), up 4.6%, FLIR Systems ( FLIR), up 3.5%, and Textron ( TXT), up 3.4%, were all gainers within the aerospace/defense industry with Honeywell International ( HON) being today's featured aerospace/defense industry winner.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the aerospace/defense industry could consider iShares DJ US Aerospace & Def Idx ( ITA) while those bearish on the aerospace/defense industry could consider ProShares Short Dow 30 ( DOG).
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