Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

This Weeks Free Stock Pick Aerospace Defense

|Includes: BA, BAESY, GD, LMT, NOC, Raytheon Company (RTN)

Raytheon

This Weeks Free Stock Pick - Investing in Aerospace & Defense Earnings Growth

Many aerospace and defense stocks have been taking damage in recent weeks thanks to the broad market slowdown and concerns over demand from developed markets like Europe. However, this is making for some great buying opportunities right now, such as with the case of Raytheon (NYSE:RTN).

Raytheon in Focus

Raytheon is a Massachusetts-based defense company specializing in broad defense systems, intelligence, missile systems, and space and airborne systems. The stock has been a strong performer when looking over the past two years and especially at the tail end of 2013 but it has run into some roadblocks as of late. In fact, shares of RTN are down nearly 10% in the past three months, easily underperforming the S&P 500 in the time frame.

However, this recent slide may actually be great news for investors as it could allow them to get in at a more reasonable price for what is otherwise a solid company. Not only does RTN have a great dividend approaching 3%, but it has impressive earnings estimate metrics which suggest that this downturn will likely be a temporary setback for this large cap stock.

Raytheon Estimates

Earnings estimates for RTN have been rising as of late with the consensus estimate for the full year going from $6.44/share 90 days ago to $6.82/share today. We have actually see the more recent estimates go even higher as the most accurate estimate comes in at $6.90/share, which can help to suggest good news at earnings season.

And best of all, RTN has a very impressive track record when it comes to beating estimates including a five percent average beat over the last four quarters. Raytheon has also missed just one time in the past four years so it has a great long term performance on this metric too.For these reasons, it shouldn't be surprising to note that RTN currently has a Zacks Rank #1 (Strong Buy) and that we are looking for more outperformance ahead.

But the story becomes even more impressive when you throw in a great dividend and a 'B' Style Score for Value. The company actually sees a PE that is less than the industry average, cash flow per share nearly double the industry, and an earnings yield higher than the aerospace and defense equipment industry too. When you combine all of these factors and note that RTN is the only strong buy in the industry right now, RTN becomes a truly compelling choice.

Bottom Line

Buying great companies on a dip is definitely a sound investing strategy and this is the case for Raytheon right now. Shares are depressed relative to the S&P 500 but fundamentals for this defense company remain strong.

Add in impressive earnings estimates and a solid track record at earnings season and it is easy to see why RTN is a strong buy. So if you are a value investor, definitely take a closer look at this defense company before it bounces back after its upcoming earnings report which is due out in a few short weeks.

Profit Rocket

Invest2Success "Profit Rockets" Stock Picks
Free Trial - Receive daily low-risk high-reward SP500 NYSE Nasdaq buy-long and short-sell stock picks that are experiencing strong increasing and decreasing earnings, that include buy sell entry, stop-loss, take profit area price targets, and trade management information to your email inbox.

Van Tharp Institute
Van Tharp Institute

Van Tharp Institute
Investing Trading Home Study Programs & Live Seminars Workshops

Dedicated to cutting edge, high quality professional educational investing trading programs for traders and investors providing a road map for financial freedom. The finest investing trading education in the financial universe. Dr Van Tharp is one of the orginal Market Wizards, and referred to as the Traders Coach.

Track n Trade Trading Software

Track n Trade CandleStick Auto-Recognition Plug-in
Quickly identify candlestick patterns without thinking. With Track 'n Trade, you have the ability to click, and select your favorite candle patterns, and have Track 'n Trade find, identify, and even auto-trade each signal through our famed Autopilot Trading System.

Candle Charting Intensive Training

Steve Nisons Candlestick Charting Intensive Training and Software
for Profitably Trading Stocks Forex Futures Commodities

Use the CandleScanner trading software to automatically scan for profitable trading setups on any timeframe. Stock forex and futures candlestick trading courses to throughly understand how to profit from candlestick chart patterns. Free newsletter and live trading webinars. Steve Nison is the authority on trading and profiting using candlesticks.

Live Trading Seminars

Stock Option Forex Futures Training Seminars Webinars Workshops
Click Here For The Complete 2015 Schedule

Professional investors traders teaching successful low-risk high-reward
trade strategies. Power profit secrets for stocks, options, forex, futures
investing trading success. Or avail of Home Study Courses and or
Trading Softwares available to improve your investment returns.