Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, defense contractor Raytheon
With that in mind, let's take a closer look at Raytheon's business and see what CAPS investors are saying about the stock right now.
|Headquarters (founded)||Waltham, Mass. (1922)|
|Market Cap||$18.66 billion|
|Industry||Aerospace and defense|
|Trailing-12-Month Revenue||$25.18 billion|
Chairman/CEO William Swanson
CFO David Wajsgras
|Return on Equity (Average, Past 3 Years)||18.3%|
|Cash/Debt||$3.64 billion / $3.61 billion|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
Late last month, leembass highlighted Raytheon's solid fundamentals: "It has a low price/book ratio and it has enough cash on hand to cover all of its debt. This stock also has maintained good earnings growth for the last 10 years. I think this stock is a good value and has an excellent margin of safety."
Currently, Raytheon sports a paltry price-to-cash flow ratio of 9.2. That's a discount to rivals Boeing (10.6), Lockheed (11.0), and General Dynamics (9.9), as well as other defense stocks like Goodrich
CAPS member KnockoutMouse elaborates on the bull case:
Many analysts think that defense budgets will shrink with Obama and the US deficit problems, but history shows how wrong that opinion is. Military spending in the past most clearly reflects the global potential for conflict and has had little to do with the internal politics of the US.
Food, energy and water are becoming scarcer, destabilizing governments around the globe. ... I hate to say it, but the potential for conflict will only increase in the future.
Raytheon has already established itself as our chief supplier of missiles and battlefield electronics. With its purchase of Applied Signal it has positioned itself as the lead company in cyber warfare and signals intelligence.
What do you think about Raytheon, 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!
Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool owns shares of Raytheon, Lockheed, and General Dynamics. Try any of our Foolish newsletter services free for 30 days.
We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.