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NYSE:RTX

Raytheon (RTX)

185.69
+0.09 (0.05%)
as of Jun 18, 2026, 11:54:58 pm Market Open.
159 watching
0
COMMENT

They agreed to a merger with UTX-N and will form a really interesting industrial as they spin off OTIS, their carrier division, and have in the past spun off Goodrich. IIS with Raytheon is growing very, very rapidly. It is a very interesting opportunity.

BUY
A great company trading at a reasonable valuation. The United Technologies merger makes sense and enlarge the company a lot. 25% of their business is cybersecurity--where the next war will be fought. RTN is a leader in this space. This is a huge cash flow machine.
PAST TOP PICK

(A Top Pick Aug 08/18, Down 1%) UTX-N is a diversified company in the aerospace, HVAC and elevator space. They will spin off some of these holdings and plan to merge with RTN-N. This may have caused some confusion in the investors mind. She thinks the some of the parts is worth more the share price today. She likes the reoccuring revenues that goes with the service contracts.

COMMENT

He has recommended defense stocks for years. He would rather buy Lockheed instead of Raytheon. The aerospace and defensive sector will be strong.

WAIT
They recently announced a complex merger with United Technologies, which itself is breaking up. This deal overhang will last another 12 months. There is some synergy here, but not an obvious one. He's lukewarm on the deal.
BUY

Right now UTX-N is a nice buying opportunity. They will spinoff some assets and will be involved with RTN-N in a merger, which will create some great opportunities. They sell original equipment with service contracts attached to generate good margins for 10 years or more. This makes them more defensive.

PAST TOP PICK
(A Top Pick Jun 08/18, Down 15%) The geopolitical background has changed. He still likes it and keeps it on his radar. There can come a time when this makes sense again and he will jump back in.
SELL
Had a great run. Now turbulence. Running into resistance, so he wouldn't be a buyer. (Analysts’ price target is $209.00)
BUY ON WEAKNESS
It's been consolidating lately. Resistance at $190. Great chart. It you hold it, hold. It's poised to push higher, but expect wider market choppiness, before the market resolves. Buy the dips, even.
TOP PICK
Defense and intelligence company. The world's getting meaner and nastier. Of all the defense companies, it has the largest exposure to cybersecurity, which is where the next war will be fought. So it's going to be big business. Global leader. Yield is 2.11%. (Analysts’ price target is $208.24)
TOP PICK
He bought in the last couple of weeks with his target being $220. US defense budgets will hang in under Trump. The outlook in missile defense and the middle east will hang in. They are also a leader in intelligence, software encryption and so on. (Analysts’ price target is $207.05)
BUY
Geopolitical tensions remain in the world (i.e. North Korea and Russia). Raytheon which focuses on cyber and missile defence; they also have heavy international exposure.
PAST TOP PICK
(A Top Pick Feb 08/18, Down 10%) Broadly speaking the aerospace arena is still favorable. The market has dialed down a little as more peaceful discussions have started with North Korea. He still wants to hold and likes their investment into electronic defense technology.
TOP PICK
Defence has been a great sector for many years and governments around the world are driving rising demand. Saudi Arabia, for example, is buying their Patriot defence missile. However, 25% of its revenues come from cybersecurity, which is a huge growth area. (Analysts’ price target is $205.95)
DON'T BUY
This defense electronics company has been in an under performing sector for the market. Politics have moved to inward looking policies, with less military action outside its borders.
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