Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, military contractor L-3 Communications Holdings
With that in mind, let's take a closer look at L-3's business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||New York (1997)|
|Market Cap||$7 billion|
|Industry||Aerospace and defense|
|Trailing-12-Month Revenue||$15.4 billion|
|Management||Chairman/CEO Michael Strianese
CFO Ralph D'Ambrosio
|Return on Equity (Average, Past 3 Years)||14.2%|
|Cash/Debt||$538 million / $4.1 billion|
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 96% of the 948 members who have rated L-3 believe the stock will outperform the S&P 500 going forward.
Based upon historical earnings, I think this stock should be valued near $105.59 using discounted cash flows over the next 5 years. ... Besides the earnings growth indicating the stock is undervalued, this stock is due to have a spin-off [in 2012] which I believe will produce more value for shareholders. The only downside that I see is the pending defense cuts over the next year or so, but I believe this is a good long-term investment.
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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool owns shares of L-3 and Lockheed. Motley Fool newsletter services have recommended buying shares of L-3. Try any of our Foolish newsletter services free for 30 days.