Last updated on April 17, 2014 at 11:32 EDT

StockCall Scans Textron and Raytheon: Aerospace Stocks Provide Flying Returns

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


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 growth process.

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

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Source: PR Newswire