5-Star Stocks Poised to Pop: L-3 Communications

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, military contractor L-3 Communications Holdings (NYS: LLL) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at L-3's business and see what CAPS investors are saying about the stock right now.

L-3 facts

Headquarters (founded)New York (1997)
Market Cap$6.8 billion
IndustryAerospace and defense
Trailing-12-Month Revenue$15.0 billion
ManagementChairman/CEO Michael Strianese
CFO Ralph D'Ambrosio
Return on Equity (average, past 3 years)13.8%
Cash/Debt$481.0 million / $4.2 billion
Dividend Yield2.9%
CompetitorsHoneywell
Lockheed Martin
Raytheon

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 96% of the 936 members who have rated L-3 believe the stock will outperform the S&P 500 going forward.

A few months ago, one of those bulls, All-Star JBouchard, tapped L-3 as a particularly attractive bargain opportunity:

Long-term contrarian pick. ... Get a nice $2 dividend every year (2.9% yield) while waiting. Currently depressed because of military spending cuts in the U.S. and elsewhere, but this won't last forever so it seems like a good opportunity to add this while prices are depressed. Existing aircraft will still need to be maintained and upgraded.

If you want market-thumping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite its five-star rating, L-3 may not be your top choice.

If that's the case, we've compiled a special free report for investors called "The 3 Dow Stocks Dividend Investors Need," which uncovers a few other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow theTrackPoisedToCAPS account.

The article 5-Star Stocks Poised to Pop: L-3 Communications originally appeared on Fool.com.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of L-3, Lockheed, and Raytheon. Motley Fool newsletter services have recommended buying shares of L-3. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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