Gold Medal Stocks to Buy Now #3: Raytheon (RTN)
Defense contractor Raytheon (RTN) is off to a good start in 2014. RTN stock is up 5% for the year-to-date, putting it well ahead of the broader markets. Take a step back, and the outperformance becomes more impressive — during the past 52 weeks, RTN stock is up 76%, vs. an 18% gain for the S&P 500.
True, fourth-quarter results showed that revenues fell 9% to miss analysts’ estimates, but earnings per share exceeded the Street estimate by 9 cents, helped by strong international sales.
Best of all, RTN stock goes for 12 times forward earnings — a 20% discount to the broader market, while ROE stands at an enviable 20%. Furthermore, RTN stock throws off a respectable dividend yield of 2.3%, so you get a little backside protection, too.
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As of this writing, Dan Burrows did not hold a position in any of the aforementioned securities.