Strong Operating History:
An attribute that we highly covet in a company is a consistent record of operating excellence. As evidenced by our Fundamental Research graph, L-3 Communications perfectly fits the bill. Since 1998, earnings per share have grown at a very consistent 27.1% compounded rate. As you can also see in the video, by the blue line marked with an *, the market has historically capitalized L-3s earnings at a normal PE of 17 or higher. Therefore, the current PE ratio of 9.8 is almost half of normal, which we believe indicates a very attractive entry point for investors with a long-term view.
Fears of Obama defense spending cuts?
carlosjhr64 2 years ago