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$65.12 -0.71 (-1.08%)
5/16/2008 4:02 PM

Raytheon Company (RTN)

CAPS Rating:
*****

The Company designs, develops, manufactures, integrates, supports and provides a wide range of technologically advanced products, services and solutions for governmental and commercial customers in the United States and abroad.

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Total Players

845 Outperforms
40 Underperforms
 

All-Stars

305 Outperforms
6 Underperforms
 

Wall Street

12 Outperforms
0 Underperforms
 

Players bullish on RTN are also bullish on:

Players bearish on RTN are also bearish on:

Ticker Tags

Massachusetts (15), Aerospace/Defense - Major Diversified (7), Large Cap (467), Defense (15), S&P 500 (484), Military Contracts (7)
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Raytheon Company At A Glance

Current Price: $65.12
Last Trade Time: 5/16/2008 4:02 PM
Open: $66.07
Previous Close: $65.83
Daily Range: $64.94 - $66.25
52-Week Range: $52.28 - $67.49
Volume: 2,985,707
Market Cap: $27.85B
P/E Ratio: 15.90
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Stock Trends

RTN VS S&P 500 (SPY)

RTN 12 month chart vs. S&P

News & Discussion Boards

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Top Bull Pitch

Recs

1

Raytheon Company (RTN)

Avatar HighHopesInSD (91.51) Submitted: 4/07/08 9:46 PM

Sales have been fairly flat for the past 7 years, so in this area, RTN is nothing to write home about. However, EPS has risen in each of the past 4 years, so that is a good thing. The profit margin has increased in each of the past 4 years. The ROE has also risen in each of the past 4 years. The...More

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Top Bear Pitch

Recs

1

Raytheon Company (RTN)

Avatar avalon02 (95.84) Submitted: 9/17/07 6:19 PM

The current conditions indicate there's still some positive momentum with RTN, but I've got a gut feeling that the intl financial scene is going to put RTN is a hard place, and profits are going to be hard to squeeze out of either the foreign or domestic markets. In this case, I rather hope I'm wron...More

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Recs

0

 (RTN)

Avatar luvnlifelake08 (39.72) Submitted: 5/15/08 2:52 PM : Outperform Start Price: $65.69 RTN Score: -1.44

We are at war and it has been paying dividends for years.

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Recs

0

 (RTN)

Avatar ScottTheGeek (30.29) Submitted: 5/12/08 2:54 PM : Outperform Start Price: $64.00 RTN Score: 0.18

Another defense stock. With some wars winding down, some continuing along, and others probably soon to start, money will keep flowing to the defense contractors. The roles played by technology, ISR (Intelligence, Surveillance and Reconnaissance), and communications in today's military operations are increasing exponentially in importance. Raytheon will continue to deliver new capabilities to the military for the foreseeable future, and will profit from it.

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Recs

0

 (RTN)

Avatar LEGMAKER (86.97) Submitted: 5/12/08 9:47 AM : Outperform Start Price: $64.04 RTN Score: -0.84

As you know, I have been really pounding the table with respect to aerospace and defense stocks. The main reason is most are centered in the United States and countries from all over, with strong currencies are going to stock up on technology to protect themselves from threats abroad. Also, emerging markets use warplanes and ships as a way to show the world that they have become a leader. It's kind of like that couple that just inherited a substantial amount of money from their parents, they could invest their money in the future to pay off debt, but instead they go off and buy an Escalade. There is also another reason, and that is hate. Just look at how some countries view each other from altercations of the past. A good example is China, who has been in the shadow of Japan for a long time; they are beginning to purchase high tech war components as it does have the effect of showing up those who have hurt them in the past.





I believe this entire sector looks good, not just on valuation but growth. Even if the dollar starts to recover, there will still be an effective sale on US goods for sometime and purchases will continue. This entire sector has had good earnings this quarter. All have at least beaten including GD, LMT, and COL. There is a marked decrease in spending for military in 2009 which is about 10% but it is escalating back upwards through at least 2013. Most of the decrease in spending is due to a deceleration of forces in Iraq. Also the defense sector is a good value here as it had begun to fall in November of last year on lagging issues with the economy and bad news out of Boeing. Let's not forget, China is increasing their military by double digits which were an increase of almost 18% this year alone.





The first quarter was a good one for Raytheon as they beat EPS expectations by over 10%. This quarter they booked $6.5 billion in work, an increase of 25%, and have a backlog of $37 billion. Sales were up 11% year over year. Operating income was up 17%. EPS was up a very good 31%. They repurchased 5.5 million shares. Annual dividend was increased by 10%. They saw double digit growth in 4 of their 6 areas of work. Operating margins bettered by 60 basis points. RTN's outlook for the rest of the year is quite good, and even these large increases of growth look conservative with respect to the world environment. With respect to sales, the rest of the year by quarter will increase at the very least by 24%, and EPS growth 22%.





The reason RTN looks so good is the same reason they have lagged the sector over the past few years, technology. Their missles and missle defense systems are in strong demand. Countries have found that their current technologies are much better and will pay more money for them. It also looks good on valuation. They recorded an excellent quarter, as I stated earlier, but the stock was not rewarded. With the price of the stock declining on slower forecasted sales growth, analysts sold the stock off. This looks to be an opportunity going forward as later the CEO clarified the company's position with respect to the rest of the year. He stated Raytheon will not approximate sales not yet received and would rather calculate in wins with respect to the company after it has been inked in a deal. So the possible full year growth of 5%-8% is without any new contract wins, which seems quite impossible given the current market.





Also remember that major increases in margins were seen in work that is increasing the most with respect to the company. Technical service and missle systems are their hot commodity and demand is pushing costs up and will continue to do so. Their current margins are better than BA, LLL, and NOC. I would expect any company in this sector is a good buy, but RTN has an exceptional value over the next three months at $70.


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Recs

0

 (RTN)

Avatar Airvin (34.12) Submitted: 5/09/08 3:52 PM : Outperform Start Price: $64.07 RTN Score: -1.12

US conflict isn't going to slow down anytime soon. Regardless of who we elect next November, rtn is a good investment

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 (RTN)

Avatar moneymkr2009 (< 20) Submitted: 4/30/08 2:35 AM : Outperform Start Price: $63.91 RTN Score: -0.35

great defence company.

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Wall Street

Results 1 - 12 of 12  

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Date		CallTime FrameStart
Price		Stock
Gain		S&P
Gain		ScorePitch
TrackZacks 93.00 04/10/08 Outperform 3M $66.44-1.99%+4.88%-6.87 Toggle the visibility of 60-Second Pitch and replies
TrackCharlesPayne 75.96 02/22/08 Outperform 3M $65.75-0.96%+5.19%-6.15
TrackBRogers 83.48 09/30/07 Outperform NS $63.28+2.91%-6.50%+9.41 Toggle the visibility of 60-Second Pitch and replies
TrackSoros 57.76 09/30/07 Outperform NS $63.28+2.91%-6.50%+9.41 Toggle the visibility of 60-Second Pitch and replies
TrackBillNygren 50.98 09/30/07 Outperform NS $63.28+2.91%-6.50%+9.41 Toggle the visibility of 60-Second Pitch and replies
TrackNWQ 42.78 09/30/07 Outperform NS $63.28+2.91%-6.50%+9.41 Toggle the visibility of 60-Second Pitch and replies
TrackEveillard 86.37 09/30/07 Outperform NS $63.28+2.91%-6.50%+9.41 Toggle the visibility of 60-Second Pitch and replies
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TrackCitigroup 89.10 02/02/07 Outperform NS $52.38+24.32%-1.43%+25.75
TrackJimCramer 80.65 03/09/06 Outperform 3W $43.18+50.82%+11.76%+39.07

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