4-Star Stocks Poised to Pop: Raytheon

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, defense contractor Raytheon (NYS: RTN) has earned a respected four-star ranking.

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

Raytheon facts

Headquarters (founded)

Waltham, Mass. (1922)

Market Cap

$18.6 billion

Industry

Aerospace and defense

Trailing-12-Month Revenue

$24.5 billion

Management

Chairman/CEO William Swanson
CFO David Wajsgras

Return on Equity (average, past 3 years)

19.3%

Cash/Debt

$2.9 billion / $4.6 billion

Dividend Yield

3.6%

Competitors

Boeing
Lockheed Martin
Northrop Grumman


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

On CAPS, 95% of the 1,350 members who have rated Raytheon believe the stock will outperform the S&P 500 going forward.

Just last month, one of those Fools, DrGoldin, succinctly summed up the bull case for our community:

The threat of sequestration is the bugaboo about this stock, but I'm optimistic that we'll avoid the dreaded fiscal cliff -- and if any defense company can thrive even in the face of sequestration, it's overbooked Raytheon. Healthy company, nice dividend, low payout ratio. What's not to like?

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 a strong four-star rating, Raytheon may not be your top choice.

If that's the case, we've compiled a special free report for investors called "Secure Your Future With 9 Rock-Solid Dividend Stocks," which uncovers several 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 4-Star Stocks Poised to Pop: Raytheon originally appeared on Fool.com.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool owns shares of Raytheon, Lockheed, and Northrop. 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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