Based on the aggregated intelligence of 130,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, defense contractor ITT (NYSE:ITT) has earned a coveted five-star ranking.

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

ITT facts

Headquarters (founded)

White Plains, N.Y. (1920)

Market Cap

$7.09 billion


Aerospace and Defense

TTM Revenue

$11.69 billion


CEO Steven Loranger (since 2004)
CFO Denise Ramos (since 2007)

Return on Equity (average, last three years)


Dividend Yield



Lockheed Martin (NYSE:LMT)
Raytheon (NYSE:RTN)

CAPS members bullish on ITT also bullish on

General Electric (NYSE:GE)
Johnson & Johnson (NYSE:JNJ)

CAPS members bearish on ITT also bearish on

General Motors (NYSE:GM)
Ford Motor (NYSE:F)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, 267 of the 282 members who have rated ITT -- some 95% -- believe the stock will outperform the S&P 500 going forward. These bulls include Ayax2006, who is ranked in the top 2% of our community, and bizcbug7.

In late January, Ayax2006 wrote that ITT "has two businesses that can thrive in the current environment, defense (accounts for about 50% of earnings), and water and waste water infrastructure." Our CAPS member concludes, "ITT would probably benefit from government spending in defense/war and infrastructure."

In a pitch from last month, bizcbug7 agreed, kindly updating our community on ITT's latest quarter:

Positioned well for future growth with defense/homeland security, water infrastructure and avionics. Outstanding top and bottom line growth. Q sales increased 16.5% yoy. Fair value calculated at $65 is roughly twice today's price of $33. ROE of 25.3% is very good. Their strong cash position suggests their ability to handle a down economy is outstanding. Cash flow over $238 M in the last Q is up 30% yoy. Dividend just increased by 22%.

What do you think about ITT, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 130,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. ITT is a Motley Fool Inside Value selection. Johnson & Johnson is a choice of Income Investor. The Fool's disclosure policy always gets a perfect score.