NYSE:RTX

Raytheon (RTX)

180.99
+1.58 (0.88%)
as of Jun 5, 2026, 8:00:00 pm Market Open.
309 watching
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Investor Insights
star iconJun 6, 2026, 12:00 am

This summary was created by AI, based on 10 opinions in the last 12 months.

Raytheon (RTX-N) is currently in a strong position with a long-term uptrend, but recent volatility in the defense sector due to geopolitical events has raised some concerns among experts. The company's hybrid focus on defense and commercial aerospace has positioned it well, with substantial backlogs and a projected increase in defense spending driven by conflicts in Ukraine and the Middle East. While the stock has outperformed its peers, up 58% last year, analysts have noted potential overvaluation, cautioning that it is trading at a premium to its historical price-to-earnings ratio. Despite these concerns, strong demand for aerospace, driven by a need for new, more fuel-efficient aircraft, could provide additional momentum. Experts highlight the need to monitor oil prices and overall market conditions closely as they assess future performance.

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Consensus
Buy
valuation icon
Valuation
Overvalued
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WATCH
Shorter term chart says yes, but the long term chart shows that they’ve had multiple problems. Would need to see it break through $200 to be a buyer.
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)
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