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No. of Recommendations: 3
Raytheon seems to me to be the only major defense company that's actually selling at a discount to fair value. Granted, there have been good reasons for it, but they are mostly all in the past (except for the pension plan obligations, which are easily manageable). The company is valued as if it still has those other problems. It doesn't.

It's business is also divided between commercial aviation and government aerospace, a good mix in my opinion. The government business consists of thousands of small contracts to supply a bewildering variety of components for a huge number of weapons system and major electronics systems. They are rarely a primary contractor, so government cuts to major programs will hurt them less than the primary contractors. Even if major new weapons systems development slows down, the old ones continue to require parts, and that's RTN's niche.

Presently, I'd buy them over any other of the major defense contractors on value alone. I own a considerable amount of the stock, btw, so consider that in my arguments.

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