Major indices finish lower amid GE earnings disappointment >>> READ MORE

10 Stocks Under $20 to Buy in 2014

Now's the time to start looking in the stock-bargain bin

    View All  

Exelis (XLS)

exelis-stock-xls12/2 Price: $17.85

Defense contractor Exelis (XLS) is on pace to post its fifth straight year of declining revenue, and earnings haven’t fared much better. The pros say 2014 is going to be a sixth straight year of weaker revenue, though per-share income is at least expected to improve a bit (from this year’s $1.51 to $1.59 next year).

So what, pray tell, has run the stock up from less than $11 per share in May to the current price of more than $17?

Because Exelis has been winning contracts at a rapid pace of late, and the market recognizes the forward-looking estimates underestimate the opportunity … and at a forward-looking P/E of 11.1, there’s already plenty of value packed in here.

As of this writing, James Brumley did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media,

©2017 InvestorPlace Media, LLC