Raytheon Company (RTN)

Telechart Pick

eps acceleration&growth / value / recent price strength (4w)

Joel Greenblatt Pick

Earnings are up year over year 3.81%, P/E at 10.6 and stock is only up roughly 3.3% year over year, looking for this stock to pop.

Screened some Magic Formula stocks through my brain and ended up with 10 new picks.

Great earning, reasonable price, and great growth means that this company's stock will continue to soar in the face of reduced military spending.

Well below their 52 week high, low debt, good dividend

Produces great equipment, offers good support, and is very entrenched in the US Military procurement system. The wars will not stop unless a third party candidate is elected in 2012 (unlikely).

mfi pick 2

While the current Administration may be less warlike than the last, it is more so than the one before that -- and Raytheon prospered through it all. What they make is what the Generals want (Admirals, too). The potential remotely piloted vehicles (primarily aircraft at the point) is enormous. The commander of a huge air wing locally recently said that he may be put out of business by them. And the rest of RTN's arsenal only becomes more valuable as the Defense Department seeks to increase bang for the buck.

There is a weakness in that the Pentagon can cancel large, multi-year orders fairly easily, and so can Congress (as they just did with the Joint Strike Fighter), but all the brass know that they need RTN as much as RTN needs them, and they aren't going to do anything that will weaken RTN if they can help it. This is a stock I will pass to my grandkids. Much as I hate it, war isn't going away, and I kinda like being on the winning side.

Hate war.

Raytheon's bread and butter has been advanced weapon systems (specifically advance missile targetting systems). As the US government tries to continue to utilize remote precision strike capability, more and more contracts roll Raytheon's way. Additionally, with a burgeoning cybersecurity unit, Raytheon is very well positioned to capitalize on the strategic shift of the Obama administration.

Aerospace / Defence

PEG = .91

With the government working on modernizing the military, the technology that Raytheon constantly develops makes it a go-to company for the government when the government is looking for new and innovative military solutions.

strong fundamentals, I know nothing about this company, just tryin out some new screens to see how the results are doing.

Raytheon is expanding in other areas than Defense

Solid earnings growth. Increases in spending should help this company and also debt is being paid back. This isn't a buy and hold, but a buy and take profits.

Even if military/defense spending declines under the new administration, this company is well positioned compared to its competitors in the civil satellite/environmental monitoring areas, and stands to benefit from increasing interest in climate change and natural disaster prediction/tracking.