5 Cutting-Edge Aerospace and Defense Stocks Taking Off

by Louis Navellier | January 19, 2012 7:00 am

As many of you now know, the U.S. military is going to be made leaner by an Obama administration set on cutting hundreds of billions of dollars on our nation’s defense[1] over the next decade. Although you’d have been lucky to have the following stocks in your portfolio over the past 12 months, whether they go any higher is anyone’s guess. We’ll know more once the specifics of the defense budget cuts have been explained.

I watch more than 5,000 publicly traded companies with my Portfolio Grader[2] tool, ranking companies by a number of fundamental and quantitative measures. And this week, I’ve got five cutting edge aerospace and defense stocks to buy.

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[3]) is an aerospace company that develops jetliners, military aircraft, satellites, missile defense, human space flight and launch systems and services. BA stock has gained 3% in the last year. BA stock gets a “B” for operating margin growth, a “B” for earnings growth, a “B” for earnings momentum, 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[4].

Goodrich (NYSE:GR[5]) supplies aerospace components, systems and services to several aerospace markets. An almost 36% gain in the last year, is good enough for GR to make the list. GR stock gets a “B” for sales growth, a “B” for operating margin growth, a “B” for earnings growth and an “A” for return on equity in my Portfolio Grader tool. For more information, view my complete analysis of GR stock[6].

Honeywell International (NYSE:HON[7]) is a diversified technology and manufacturing company that has posted a gain of almost 6% in the last year. HON gets a “B” for earnings growth, 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[8].

Hexcel (NYSE:HXL[9]) develops products for commercial aerospace, space and defense and industrial applications. HXL stock has jumped 31% in the last 12 months. HXL stock gets a “B” for sales growth, an “A” for operating margin 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 and a “B” for return on equity in my Portfolio Grader tool. For more information, view my complete analysis of HXL stock.[10]

Lockheed Martin (NYSE:LMT[11]) researches, designs, develops, manufactures, integrates and sustains advanced technology systems and products. In the last 12 months, LMT stock has gained 7%. LMT stock gets a “B” for earnings momentum, a “B” for earnings growth, 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[12].

Get more analysis of these picks and other publicly traded stocks with Louis Navellier’s Portfolio Grader[13] tool, a 100% free stock rating tool that measures both quantitative buying pressure and eight fundamental factors.

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