Raytheon Company (RTN): Today's Featured Industrial Goods 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 Industrial Goods sector lower today making it today's featured Industrial Goods laggard. The sector as a whole closed the day up 0.3%. By the end of trading, Raytheon Company fell $1.47 (-2.7%) to $52.68 on heavy volume. Throughout the day, 4.4 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 $52.64-$54.07 after having opened the day at $54.07 as compared to the previous trading day's close of $54.15. Other companies within the Industrial Goods sector that declined today were: Adept Technology ( ADEP), down 7.2%, M.D.C. Holdings ( MDC), down 5.8%, China Yuchai International ( CYD), down 5.2%, and Avalon Holdings ( AWX), down 4.9%.
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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 $18.1 billion and is part of the aerospace/defense industry. The company has a P/E ratio of 8.8, below the S&P 500 P/E ratio of 17.7. Shares are down 4.6% year to date as of the close of trading on Wednesday. Currently there are five analysts that rate Raytheon Company a buy, two analysts rate it a sell, and 10 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 revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Goldfield ( GV), up 7.3%, India Globalization Capital ( IGC), up 7.1%, China Ming Yang Wind Power Group ( MY), up 7%, and Broadwind Energy ( BWEN), up 6.7%, were all gainers within the industrial goods sector with Allegheny Technologies ( ATI) being today's featured industrial goods sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the industrial goods sector could consider Industrial Select Sector SPDR ( XLI) while those bearish on the industrial goods sector could consider ProShares Short Dow 30 ( DOG).

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