5 Aerospace and Defense Stocks to Sell

U.S. budget deficits weigh heavily on these sectors

   
5 Aerospace and Defense Stocks to Sell

obama f 22 defense budget e1296705951595 5 Aerospace and Defense Stocks to SellIt’s no mystery why the U.S. government is cutting back on federal spending and contractors. The focus on America’s ballooning debt has made cost-cutting a priority, and unfortunately that means smaller pay days for big time aerospace and defense stocks.

It doesn’t help that airlines are hurt by higher fuel prices and weaker consumer spending, so they are reluctant to order new commercial jets.

I watch more than 5,000 publicly traded companies with my Portfolio Grader tool, ranking companies by a number of fundamental and quantitative measures. And this week, I’ve identified five aerospace and defense stocks to sell.

Here they are, in alphabetical order. Each one of these stocks gets a “D” or “F” according to my research, meaning it is a “sell” or “strong sell.”

Alliant Techsystems (NYSE:ATK) aerospace, defense, and commercial products company that has experienced a stock loss of 28% in the last year. Alliant gets a “D” grade for sales growth, a “D” grade for earnings growth, a “D” grade for earnings momentum, an “F” grade for its ability to exceed the consensus earnings estimates on Wall Street, and a “D” grade for the magnitude in which earnings projections have increased over the past months. For more information, view my complete analysis of ATK stock.

CAE (NYSE:CAE) is involved with simulation and modeling technologies and integrated training services. In the last year, CAE stock has dropped 24%, while the Dow Jones has posted a gain of 7%. CAE stock gets a quantitative grade of “F” in my Portfolio Grader tool. For more information, view my complete analysis of CAE stock.

Elbit Systems (NASDAQ:ESLT) is an international defense electronics company. Since last April, ESLT stock has dipped 32%. Elbit stock gets an “F” grade for operating margin growth, an “F” grade for earnings growth, a “D” grade for earnings momentum, and a “D” grade for the magnitude in which earnings projections have increased over the past months. For more information, view my complete analysis of ESLT stock.

Embraer (NYSE:ERJ) is a Brazilian manufacturer of air craft that has watched its stock value slide 6% in the last 12 months. Embraer stock gets a “D” grade for operating margin growth, an “F” grade for earnings growth, an “F” grade for earnings momentum, and a “D” grade for return on equity. For more information, view my complete analysis of ERJ stock.

Rockwell Collins (NYSE:COL) designs, produces and supports communications and aviation electronics. Rockwell stock is down 11% in the last year. COL stock gets a “D” grade for sales growth in my Portfolio Grader tool. For more information, view my complete analysis of COL stock.

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

 


Article printed from InvestorPlace Media, http://investorplace.com/2012/04/5-aerospace-and-defense-stocks-to-sell-atk-cae-eslt-erj-col/.

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