Raytheon Company (RTN): 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.

Raytheon Company ( RTN) pushed the Aerospace/Defense industry higher today making it today's featured aerospace/defense winner. The industry as a whole closed the day up 0.5%. By the end of trading, Raytheon Company rose 61 cents (1.1%) to $57.93 on heavy volume. Throughout the day, four million shares of Raytheon Company exchanged hands as compared to its average daily volume of two million shares. The stock ranged in a price between $57.10-$57.93 after having opened the day at $57.14 as compared to the previous trading day's close of $57.32. Other companies within the Aerospace/Defense industry that increased today were: Astrotech Corporation ( ASTC), up 4.8%, Heico Corporation ( HEI.A), up 3.8%, Orbital Sciences Corporation ( ORB), up 2.9%, and Hexcel Corporation ( HXL), up 2.2%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

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 $18.66 billion and is part of the industrial goods sector. The company has a P/E ratio of 10.1, below the S&P 500 P/E ratio of 17.7. Shares are down 0.4% year to date as of the close of trading on Thursday. 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, 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.

On the negative front, Innovative Solutions and Support ( ISSC), down 5.2% and Moog ( MOG.A), down 1.8%, were all laggards within the aerospace/defense industry with Embraer S.A ( ERJ) being today's aerospace/defense industry laggard.

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).

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.
null

If you liked this article you might like

Tax Reform Is Coming and That Means Trump Stock Rally Is Ready to Kill It Again

'Trump Stock' Rally Is Back on Track

Jim Cramer Likes These Two Defense Stocks

Everyone Needs Significant Exposure to Defense Stocks: Market Recon

Lockheed Martin, Raytheon, Activision Blizzard: 'Mad Money' Lightning Round