Raytheon Company

Raytheon Company (RTN) continues to be a solid Growth and Income pick with strong fundamentals, such as an industry-leading dividend yield of 3%. Raytheon’s return on equity (ROE) of 18% tops the industry average of 15%. The company’s net profit margin of 7.5% compares to an industry average of 6%.

Company Description

Raytheon Company is the one of the largest aerospace and defense companies in the U.S., with a well-diversified line of military products, including missiles, radars, sensors, surveillance and reconnaissance equipment, communication and information systems, naval systems, air traffic control systems, and technical services.

A Recent Contract

The company was recently awarded a $7 million follow-on contract from the Office of Naval Research to improve the semiconductors used by U.S. military agencies.

Stellar Fundamentals

Raytheon continues to be a solid Growth and Income pick with strong fundamentals, such as an industry-leading dividend yield of 3%. Raytheon’s return on equity (ROE) of 18% tops the industry average of 15%. The company’s net profit margin of 7.5% compares to an industry average of 6%.

Bullish Projections

The Zacks Consensus Estimate has been on the rise. Current year forecasts of $4.78 per share is above the 2 months-ago level of $4.71. For the following year, the Zacks Consensus Estimate of $5.09 per share was increased from $5.03 over the past 2 months.

Strong Results

The company recently posted second-quarter earnings of $1.24 per share, topping the year-prior $1.00 and exceeding the Zacks Consensus Estimate by 10%.

Net sales of $6.1 billion came in above last year’s $5.9 billion. Total bookings of $7.6 billion surpassed the year-prior $6.0 billion.

Read the full analyst report on RTN