PowerRatings Home
Long Term PowerRatings
Industry PowerRatings
Gold Member's Login  |  My Account
PowerRatings Lists
PowerRatings by Market


PowerRatings Live & Model Accounts


PowerRatings
Prominent Portfolios

PowerRatings Analysis
Daily Analysis
Monday's PowerRating Upgrades: HRL, FDRY, RDK
Monday, November, 17 2008

This week's upgraded stocks includes Hormel Foods, the multinational maker of consumer meat and food brands, which was just upgraded to a 7 Long Term PowerRating. More >>
PowerRatings Best of the Requests: AMZN, CTAS, PG
Thursday, November, 13 2008

Today's list span the gamut from internet retailers to Business service companies including Procter & Gamble, which is the number one ranked stock on the most requested screener, with a 6 Long Term PowerRating. More >>
More Analysis >>
A Trio of Top Defense Stocks for Investors: GD, ATK, NOC
By David Penn
July 8, 2008   1:57 PM ET

We've talked a lot about recession-beater stocks here at PowerRatings.net, stocks from industries like utilities (the recession-beater industry without peer), drug manufacturers, consumer staples and personal products.

But there is another industry that investors should consider turning toward at this point in time - and the fortunes of the companies in this industry have less to do with the capacity to withstand an economic downturn and more with the necessities (perceived or real) of developing new weapons and weapons technologies in an increasingly conflicted world.

That industry, as you might imagine, is the Aerospace/Defense Products and Services industry, an industry with an Industry PowerRating of 10.

I've targeted three companies in this top-rated industry group, all with high, "consider buying" Long Term PowerRatings, all among those stocks which, according to our research, are likely to be both more reliable and better performers than the average stock after a year. Investors looking to add quality stocks to their portfolios - or even long-term traders looking for stocks with positive outlooks over the next several months - should keep stocks like these in mind.

First up is General Dynamics (GD | Quote | Chart | News | PowerRating). General Dynamics has a Long Term PowerRating of 9. Stocks with Long Term PowerRatings of 9 have been higher one year later more than 79% of the time according to our research. Compare this to the average stock, which has been higher one year later less than 68% of the time.

General Dynamics is on a streak of beating analyst earnings estimates going back to January 2007. The company most recently reported EPS of 1.42, compared to analyst estimates anticipating earnings per share of 1.29. General Dynamics has a P/E of 15 and has a modest dividend yield of 1.70.

The other two defense stocks at the top of this industry include Alliant Techsystems (ATK | Quote | Chart | News | PowerRating) and Northrop Grumman Corp (NOC | Quote | Chart | News | PowerRating). Both of these stocks have Long Term PowerRatings of 8. We found that 8-rated stocks have tended to gain approximately 17% on average after one year. The average stock, on the other hand, has tended to gain between 12-13% on average over the same time period.

Alliant Techsystems has been a consistent performer come earnings time, beating analyst estimates for six consecutive quarters, most recently beating estimates by six cents. The company has a P/E of 16, pays no dividend, and is trading in the lower half of its 52-week range between 120.90 and 95.00.

Northrup Grumman, for its part, has a P/E of 13.60 and offers a dividend yield of 2.40. The company has produced four consecutive earnings beats, going back to the fall of 2007.

Looking for more long-term solutions to your investing problems? Don't let the volatility of this market lead you to miss out on stocks you'll be glad to have bought a year from now.

Click here to get a copy of our special, Free Report on the "5 Secrets to Successful Stock Investing"

Learn what you need to know as an active investor looking to invest in companies with a history of financial strength and a track record for growth. Click the link above or call us at 888-484-8220 extension 1 to get your copy of the "5 Secrets to Successful Stock Investing" today!

David Penn is Senior Editor at PowerRatings.net.



Contact us Toll-free 1-888-358-1193
Outside the U.S. please call 1-201-680-7112

INVESTOR CENTER
PREMIER SPONSORED LINKS

| Terms and Conditions | Editorial Policy | Privacy Policy | Disclaimer | Contact Us | Feedback |

Any information or material contained in the websites owned and operated by The Connors Group, Inc. (the "Company"), including but not limited to the THEFXMARKETS.COM, POWERRATINGS.NET, TRADINGMARKETS.COM, and THEMONEYBLOGS.COM websites (collectively, the "Websites"), and in the related services and products is provided for informational and educational purposes only. The information or material is NOT a recommendation or solicitation to buy or sell any security or other investment vehicle. Please review our full Disclaimer prior to using the Websites. Furthermore, your use of the Websites and all related services constitutes a legally binding agreement under the Company's terms and conditions. Please review the Terms and Conditions of Use. To better comprehend the Company's other practices and policies, please review the Privacy Policy and the Editorial Policy.

Copyright © 2008 The Connors Group, Inc.