StockCall Scans Textron and Raytheon: Aerospace Stocks Provide Flying Returns
LONDON, February 20, 2013
LONDON, February 20, 2013 /PRNewswire/ --
Defense companies performed well but face a new set of challenges. The
economic scenario is improving, easing the price pressure, but the looming
fear of economic sequestration may turn out to be a dampener for these stocks.
The spending cuts are expected to have negative impact on these companies.
However, most of the stalwarts in the industry are ready to face the challenge
and have been concentrating on developing new product lines to keep the
positive momentum going on. Textron Inc. (NYSE: TXT) recently won a number of
new contracts and its stock marked a new high. Raytheon Co. (NYSE: RTN) is
also doing well by introducing new products. Overall, the combat equipment
companies are well armored to fight this new battle. StockCall has taken an
interest in these companies and you can now sign up to download the free
technical research on Textron and Raytheon at
Textron Expects Better Cessna Demand
Textron's stock is in a bull's run and recently touched its new 52-week high.
The company won a couple of good contracts lately and the stock seems to have
taken the instances in a positive light. The stock is up 20 percent so far
this year and the momentum is likely to continue into the future. Textron
reported robust results for its fourth quarter. Its adjusted net profit stood
at 56 cents per share and beat consensus estimate of 55 cents per share. Its
revenue also inched up 3 percent to touch $3.36 billion. The sales figure
lagged behind the expected number of $3.42 billion. Sign up today to read the
free research report on Textron Inc. at http://www.StockCall.com/TXT022013.pdf
Textron is a leading corporate aircraft manufacturer. Thus, its fortunes are
very closely tied to the economic revival and corporate spending. While its
Cessna sales remained subdued, the company witnessed good demand for its
commercial and military helicopters. However, Textron also expects Cessna
volume to pick up during 2013. The company's stock is expected to perform well
on the back of these positive catalysts. Textron has the benefit of exposure
to both civil and defense projects, and thus it is well placed to keep up its
Textron is also moving ahead with new product developments. It recently
launched two new vehicles under its Commando marquee. The vehicles are
designed for international combat units.
Raytheon Offers High Dividend Yield
Raytheon is one of the most prominent players in the defense contracts field.
The company offers good investment opportunity as the stock dropped 3 percent
in the past 12 months and provides a good entry point for long-term
investment. Raytheon is also a good income opportunity as its current dividend
yield stands at 3.68 percent. It performed well in 2012 but owing to defense
spending cuts, the company expects a mild decline in its revenue. However, the
impact of this low guidance is already baked into the stock price. Register to
download the free technical analysis on Raytheon Co. at
Raytheon expects to make up for sequestration effects by focusing on its
international business. The company is also looking to make its products and
programs more affordable. The step will help Raytheon in boosting the demand.
It is also taking steps to curtail the costs and to boost margins. The company
introduced a wide range of products to keep its portfolio diversified.
Raytheon's stock is expected to recover its losses in the near future.
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