They also have products to monitor our borders, another contentious but possibly lucrative business. I can think of many areas to expand into, like college campuses, shopping malls, corporate campuses, the streets, and highways. The list is endless.

In terms of basic fundamentals, my initial review did not reveal any screaming value, but its growth potential and "recession-proof" business offer value. No presidential candidates will be soft on defense in an election year.

Various business publications have also remarked that Raytheon is the best managed of the large defense contractors. The basic metrics are sound, with a PEG ratio of 1.13, a P/B of 2.4, and a P/S of 1.3. The downside does not seem to be a major issue. The P/E of 21 and the yield are only average, but like most of my recommendations, it does have one; 1.7% and that is important too.

I looked at several other defense contractors and weeded them out for one reason or another, but I think that most of them will do well in the current eco-political environment. It seems to me that if you were to assemble a small portfolio for the next decade there would be merit to including at least one.

To find potential opportunities and verify my track record, read Chasing Value and Serious Money.

DISCLOSURE: I am an active investor. I do not own shares of RTN but may acquire shares at a future date.

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm.