Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, defense company Exelis (NYSE: XLS) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Exelis' business and see what CAPS investors are saying about the stock right now.

Exelis facts

Headquarters McLean, Va.
Market Cap $1.5 billion
Industry Aerospace and defense
Trailing-12-Month Revenue $6.0 billion
Management CEO David Melcher
CFO Peter Milligan
Trailing-12-Month Operating Margin 10.4%
Cash/Debt $64.0 million / $649.0 million
Dividend Yield 4.8%
Competitors Boeing (NYSE: BA)
General Dynamics (NYSE: GD)
Lockheed Martin (NYSE: LMT)

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 94% of the 16 members who have rated Exelis believe the stock will outperform the S&P 500 going forward. These bulls include harleytodd and shamapant.

Earlier this week, harleytodd tapped the recent ITT (NYSE: ITT) spinoff as a timely bargain opportunity: "$6B rev with $2B mkt cap = cheap. P/E is 4 vs industry P/E of 20. 4.5% yield. The market regularly undervalues spinoffs for a period of time so buy it now!"

In fact, Exelis' P/E of 4 represents a clear discount to competitors like Boeing (14), General Dynamics (9), and Lockheed (9).

CAPS member shamapant elaborates on bull case:

Classic Undervalued Spinoff situation. Exelis trades at just over 4x earnings, and is hit hard for both being a spin-off and being in an industry with a bad rep, defense cuts. ITT shareholders invested for ITT, not for a spinoff company, let alone a defense company...these shares are undervalued-expect a bounce.

What do you think about Exelis, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.