Rockwell Collins Inc. (COL): Today's Featured Aerospace/Defense Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Rockwell Collins ( COL) pushed the Aerospace/Defense industry higher today making it today's featured aerospace/defense winner. The industry as a whole closed the day up 0.4%. By the end of trading, Rockwell Collins rose $1.37 (2.7%) to $52.75 on heavy volume. Throughout the day, 1.7 million shares of Rockwell Collins exchanged hands as compared to its average daily volume of one million shares. The stock ranged in a price between $51.68-$52.98 after having opened the day at $51.68 as compared to the previous trading day's close of $51.38. Other companies within the Aerospace/Defense industry that increased today were: Smith & Wesson Holding Corporation ( SWHC), up 3.5% and Astronics Corporation ( ATRO), up 2.7%.
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Rockwell Collins, Inc. designs, produces, and supports communications and aviation electronics for commercial and military customers worldwide. It operates in two segments, Government Systems and Commercial Systems. Rockwell Collins has a market cap of $7.27 billion and is part of the industrial goods sector. The company has a P/E ratio of 12.4, above the average aerospace/defense industry P/E ratio of 12.1 and below the S&P 500 P/E ratio of 17.7. Shares are down 7.7% year to date as of the close of trading on Tuesday. Currently there are nine analysts that rate Rockwell Collins a buy, one analyst rates it a sell, and six rate it a hold.

TheStreet Ratings rates Rockwell Collins as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, revenue growth, notable return on equity and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

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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