Raytheon Company (RTN): Today's Featured Aerospace/Defense Laggard

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.

Raytheon Company ( RTN) pushed the Aerospace/Defense industry lower today making it today's featured Aerospace/Defense laggard. The industry as a whole closed the day down 0.8%. By the end of trading, Raytheon Company fell 57 cents (-1%) to $55.08 on average volume. Throughout the day, 1.6 million shares of Raytheon Company exchanged hands as compared to its average daily volume of 1.7 million shares. The stock ranged in price between $54.45-$55.19 after having opened the day at $55.17 as compared to the previous trading day's close of $55.65. Other companies within the Aerospace/Defense industry that declined today were: Aerosonic Corporation ( AIM), down 6.1%, Astrotech Corporation ( ASTC), down 4.9%, AAR ( AIR), down 3%, and TransDigm Group ( TDG), down 2.4%.
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Raytheon Company designs, develops, manufactures, integrates, and supports technological products, services, and solutions for governmental and commercial customers in the United States and internationally. Raytheon Company has a market cap of $18.55 billion and is part of the industrial goods sector. The company has a P/E ratio of 9.7, 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 15% year to date as of the close of trading on Monday. Currently there are six analysts that rate Raytheon Company a buy, one analyst rates it a sell, and 11 rate it a hold.

TheStreet Ratings rates Raytheon Company as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, TAT Technologies ( TATT), up 2.9%, Breeze-Eastern Corporation ( BZC), up 1.9%, and Taser International ( TASR), up 1.6%, were all gainers within the aerospace/defense industry with B/E Aerospace ( BEAV) being today's featured aerospace/defense industry leader.

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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