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


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 respected four-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

$7.2 billion


Aerospace and defense

Trailing-12-Month Revenue

$15.2 billion


Chairman/CEO Michael Strianese CFO Ralph D'Ambrosio

Return on Equity (average, past 3 years)



$493.0 million / $4.1 billion

Dividend Yield



Lockheed Martin
Northrop Grumman

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

On CAPS, 96% of the 947 members who have rated L-3 believe the stock will outperform the S&P 500 going forward.

Just last month, one of those bulls, All-Star JBouchard, tapped L-3 as a solid 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-beating 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 four-star rating, L-3 may not be your top choice.

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

At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of L-3, Lockheed, and Northrop. 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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