L-3 Communications Holdings Inc (LLL): 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.

L-3 Communications Holdings ( LLL) pushed the Aerospace/Defense industry higher today making it today's featured aerospace/defense winner. The industry as a whole closed the day up 0.2%. By the end of trading, L-3 Communications Holdings rose 74 cents (1%) to $74.47 on average volume. Throughout the day, 559,767 shares of L-3 Communications Holdings exchanged hands as compared to its average daily volume of 526,500 shares. The stock ranged in a price between $73.51-$75.07 after having opened the day at $73.73 as compared to the previous trading day's close of $73.73. Other companies within the Aerospace/Defense industry that increased today were: CPI Aerostructures ( CVU), up 5.7%, Alliant Techsystems ( ATK), up 5%, Astronics Corporation ( ATRO), up 3.7%, and Boeing ( BA), up 3.2%.
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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 billion and is part of the industrial goods sector. The company has a P/E ratio of 8.1, below the S&P 500 P/E ratio of 17.7. Shares are up 10.6% year to date as of the close of trading on Thursday. Currently there is one analyst that rates L-3 Communications Holdings a buy, one analyst rates it a sell, and 11 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 attractive valuation levels, increase in stock price during the past year, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

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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