5 Aerospace and Defense Stocks to Buy

by Louis Navellier | December 22, 2011 6:30 am

Over the past year, America’s military might has proven successful in fighting the war on terror. Despite the proposed defense cuts and mishaps over captured spy drones in Iran, contracts are still in abundance, and faith in our defensive capabilities remains strong.

I watch more than 5,000 publicly traded companies with my Portfolio Grader[1] tool, ranking companies by a number of fundamental and quantitative measures. And this week, I have five aerospace and defense buys.

Here they are, in alphabetical order. Each one of these stocks gets an “A” or “B” according to my research, meaning it is a “strong buy” or “buy.”

Boeing (NYSE:BA[2]) works with commercial jetliners, military aircraft, satellites, missile defense, human space flight and launch systems and services. In 2011, BA stock has posted a gain of 12.5%. BA gets a “B” for operating margin growth, a “B” for earnings momentum, a “B” for earnings growth, an “A” for its ability to exceed the consensus earnings estimates on Wall Street, an “A” for the magnitude in which earnings projections have increased over the past month, a “B” for cash flow and an “A” for return on equity in my Portfolio Grader tool. For more information, view my complete analysis of BA stock[3].

Goodrich (NYSE:GR[4]) supplies aerospace components, systems and services to its customers. Year-to-date, GR stock is up 40%, compared to a gain of just 4% for the Dow Jones. GR stocks get a “B” for sales growth, a “B” for operating margin growth, a “B” for earnings growth, a “B” for the magnitude in which earnings projections have increased over the past month and an “A” for return on equity in my Portfolio Grader tool. For more information, view my complete analysis of GR stock[5].

Honeywell International (NYSE:HON[6]) is a diversified technology and manufacturing company based in New Jersey. HON has posted a modest gain of 2% since the start of 2011. HON stock gets an “A” for earnings momentum, a “B” for its ability to exceed the consensus earnings estimates on Wall Street, a “B” for the magnitude in which earnings projections have increased over the past month and an “A” for return on equity in my Portfolio Grader tool. For more information, view my complete analysis of HON stock[7].

Lockheed Martin (NYSE:LMT[8]) researches, designs, develops, manufactures, integrates and sustains advanced technology systems and products. Compared to small gains by the broader markets, LMT has posted a gain of 13.5% in 2011. LMT stock gets a “B” for earnings growth, a “B” for earnings momentum, a “B” for its ability to exceed the consensus earnings estimates on Wall Street, a “B” for the magnitude in which earnings projections have increased over the past month, a “B” for cash flow and an “A” for return on equity in my Portfolio Grader tool. For more information, view my complete analysis of LMT stock[9].

Raytheon (NYSE:RTN[10]) focuses on defense, homeland security and other government markets. A modest gain of 1% ensures RTN a place on this defense stocks list. RTN stock gets a “B” for earnings momentum, a “B” for the magnitude in which earnings projections have increased over the past month, an “A” for cash flow and an “A” for return on equity in my Portfolio Grader tool. For more information, view my complete analysis of RTN stock[11].

Get more analysis of these picks and other publicly traded stocks with Louis Navellier’s Portfolio Grader[12] tool, a 100% free stock rating tool that measures both quantitative buying pressure and eight fundamental factors.

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