What is it you look for when researching a new investment? Whether you're a value investor or a growth investor, you probably have a few basic "wants" that you keep an eye out for. You want to find a company that's increasing revenues and earnings (Symantec
One company that's been putting all of these elements together is defense stalwart Raytheon
Unfortunately for investors who do not already own the company, Raytheon's valuation already fully reflects this confluence of "good grades." Its stock currently sports a hefty 38 trailing P/E ratio. Its enterprise value-to-free cash flow ratio is lower, at 20, so the company is not really as overpriced as its GAAP numbers make it seem. But however you measure it, Raytheon's share price is probably too high for a company that analysts expect to grow profits at 12% per annum.
Whether you're into value, growth, or dividends, we've got an investment newsletter just your style. Check out all of our investment newsletters today to learn more.
For more Foolish defense news, read:
- Lockheed Martin Gains Altitude
- Defense Budget Boom
- Will the Navy Scuttle Shipbuilders?
- Bulletproof and Ready for Terror
Fool contributor Rich Smith owns shares of Hasbro, but none of the other companies mentioned in this article.