Buy or Sell Raytheon Stock Today?
Raytheon (NYSE: RTN) is a large cap company that operates within the industrials sector. Its market cap is $45 billion today, and its total one-year return is 23.85% for shareholders.
Raytheon stock is beating the market, but does that make it a good buy today? To answer this question we've turned to the Investment U Stock Grader. Our research team built this system to diagnose the financial health of a company.
Our system looks at six key metrics...
Earnings-per-Share (EPS) Growth: Raytheon reported a recent EPS growth rate of -0.54%. That's below the industrials sector average of 46.05%. That's not a good sign. We like to see companies that have higher earnings growth.
Price-to-Earnings (P/E): The average price-to-earnings ratio of the industrials sector is 36.34. And Raytheon's ratio comes in at 21.96. It's trading at a better value than many of its competitors.
Debt-to-Equity : The debt-to-equity ratio for Raytheon stock is 50.74. That's below the industrials sector average of 115.9. The company is less leveraged.
Free Cash Flow per Share Growth : Raytheon has decreased its FCF per share over the last year. That's not good for investors. In general, if a company is growing its FCF, it will be able to pay down debt, buy back stock, pay out more in dividends and/or invest money back into the business to help boost growth.
Profit Margins : The profit margin of Raytheon comes in at 8.72% today. And generally, the higher, the better. We also like to see this margin above that of its competitors. Raytheon's profit margin is above the sector average of 4.87%. So that's a positive indicator for investors.
Return on Equity : Return on equity tells us how much profit a company produces with the money shareholders invest. The ROE for Raytheon Co is 21.9%, and that's above its sector average ROE of 20.82%.
Raytheon stock passes four of our six key metrics today. That's why our Investment U Stock Grader rates it as a buy with caution.
Please note that our fundamental factor checklist is just the first step in performing your own due diligence. There are many other factors you should consider before investing. That's why The Oxford Club offers more than a dozen newsletters and trading advisories all aimed at helping investors grow and maintain their wealth. For more details, click here.
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