Chasing Value: General Dynamics & Raytheon: The defense does not rest

Filed under: Products and services, Lockheed Martin (LMT), Chasing Value, Stocks to Buy, Technology, General Dynamics Corp (GD), Raytheon Company (RTN), Best Stocks for 2008

When it comes to defense spending over the last nine years, there has not been any rest. As I have reported on numerous occasions, the defense sector has beaten the market indices year after year. This year is no exception and two of my recommendations remain ahead of the market and are reporting new contracts every day.

Today, theThe Arizona Republic reports [registration required] that General Dynamics (NYSE: GD) is to receive billions in contracts for its C4 Systems as part of the Army's extensive modernization plan. The company is building a communications network for the Army and is the lead contractor with Lockheed Martin (NYSE: LMT) for a wireless network that will deliver mobile connectivity to soldiers on the field.

General Dynamics is up about $10 (12.5%) in the last year and offers a 1.5% dividend yield. Its current P/E is 16.5 and its P/S is 1.33 with a 15% ROIC. It opened today at $90.58.

Continue reading Chasing Value: General Dynamics & Raytheon: The defense does not rest

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