Stanley, Inc. (NYSE:SXE.DL)

CAPS Rating: No stars

The Company provides information technology services and solutions to U.S. defense and federal civilian government agencies.


Player Avatar dollarbrain (42.88) Submitted: 11/1/2008 12:51:55 PM : Underperform Start Price: $34.70 SXE.DL Score: -11.44

Investors need to look forward when making decisions, not backwards. The market has already priced in Stanley's impressive results for this quarter, but has failed to see that there will likely be limitations to the company's growth going forward. With a P/E ratio of 27.6, the market is treating this like a high growth stock. Yet, looming on the horizon is an Obama government that will be looking to decrease defense spending in order to help pay for the government's recent handouts, as well as health care and other promises. So far this year, Stanley has received 71% of its revenue from the Department of Defense. This does not bode well for a company that has a high growth rate priced into its stock.

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