Ben Homan
Long/short equity, value, special situations, contrarian

Exelis - Dividend Payer With 30% Upside

Exelis Inc. (NYSE:XLS) is an aerospace & defense company that was spun off from ITT Corp (NYSE:ITT) on October 31, 2011. The full company background can be found here.

In this article, I will attempt to show that Exelis is undervalued due to several reasons.

  1. Continued strong order log
  2. Financial improvements due to restructuring
  3. Strong international presence
  4. Good management

Strong Order Log

Of course, the primary issue when examining the Aerospace & Defense industry is the effect of sequestration on revenues. Exelis claims that it has not been given any guidance regarding sequestration (discussed in most recent earnings call here). This is corroborated by an article discussing comments from Lockheed Martin's (NYSE:LMT)...

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