Raytheon Company – Growth And Income – Zacks Rank Buy
Source: http://www.zacks.com/commentary/11963/Raytheon+Company+-+Growth+And+Income+-+Zacks+Rank+BuyPosted on Friday, August 28th, 2009 | In Market Commentary, Stocks to Watch
Raytheon Company (RTN) continues to be a solid Growth and Income pick with strong fundamentals, such as an industry-leading dividend yield of 3%. Raytheon’s return on equity (ROE) of 18% tops the industry average of 15%. The company’s net profit margin of 7.5% compares to an industry average of 6%.
Company Description
Raytheon Company is the one of the largest aerospace and defense companies in the U.S., with a well-diversified line of military products, including missiles, radars, sensors, surveillance and reconnaissance equipment, communication and information systems, naval systems, air traffic control systems, and technical services.
A Recent Contract
The company was recently awarded a $7 million follow-on contract from the Office of Naval Research to improve the semiconductors used by U.S. military agencies.
Stellar Fundamentals
Raytheon continues to be a solid Growth and Income pick with strong fundamentals, such as an industry-leading dividend yield of 3%. Raytheon’s return on equity (ROE) of 18% tops the industry average of 15%. The company’s net profit margin of 7.5% compares to an industry average of 6%.
Bullish Projections
The Zacks Consensus Estimate has been on the rise. Current year forecasts of $4.78 per share is above the 2 months-ago level of $4.71. For the following year, the Zacks Consensus Estimate of $5.09 per share was increased from $5.03 over the past 2 months.
Strong Results
The company recently posted second-quarter earnings of $1.24 per share, topping the year-prior $1.00 and exceeding the Zacks Consensus Estimate by 10%.
Net sales of $6.1 billion came in above last year’s $5.9 billion. Total bookings of $7.6 billion surpassed the year-prior $6.0 billion.
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 About Alex Kolb (http://www.zacks.com/)
Alex Kolb is an Editor at Zacks Investment Research. |
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