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NYSE:RTX
Raytheon (RTX)
Financials 
Technical Analysis 
Aug 26, 2026, 12:00 amThis summary was created by AI, based on 9 opinions in the last 12 months.
Raytheon (RTX-N) is currently experiencing a robust long-term uptrend, benefiting from increased defense spending amid ongoing global conflicts, particularly in Ukraine and the Middle East. While the stock has shown impressive growth, up 43% in recent picks and 58% last year, some analysts express caution over a potential valuation issue as the price-to-earnings ratio has reached 31x. With 66% of revenues derived from the commercial aircraft sector and an all-time high of backlogs, the company is well-placed to capitalize on burgeoning demand from airlines for new equipment. However, concerns about extended valuations persist, and any drop below previous lows may prompt a reevaluation of positions in this stock, making it crucial for investors to monitor the situation closely.
Lucrative commercial aerospace division seeing big demand in after-market. OEM business starting to ramp up. Margins on defense should improve with easing of supply chain issues. New orders from international customers.
Christine PooleMildly cyclical, but lots of excess capital to play offense in a tough environment. Main driver of earnings is still uncovering structural cost savings, plus rebound in commercial aircraft maintenance. Very reasonable valuation. Yield is 2.38%.
(Analysts’ price target is $110.77)
Chris BlumasTheir defence side is doing well due to geopolitical tensions. Aerospace suffered during Covid because nobody was flying, but now the travel rebound benefits this business. There is cost inflation in defence, though. Now plane engine orders are coming. Wait for a pullback to the mid-$90s to buy long term.
Christine PooleGood business with high demand for defense products.
Combination of commercial operations with defense products is strong.
US defense spending continuing to rise.
Expecting 6-7% revenue growth going forward.
8% cash flow yield is very strong.
Gordon ReidOwns shares in business - has performed well.
Defense sector recently pulled back on debt ceiling talks.
Overall, a good name to own for the long term.
Demand for defense spending not going away.
Gordon ReidUnfortunately, geopolitics (Russian war) is pushing defence spending up around the world. RTX has a good backlog. Another business is commercial aerospace with demand driven by strong travel trends. Air travel should return to pre-pandemic by early 2024. More flights means more airplane servicing, which benefits RTX.
(Analysts’ price target is $109.55)Christine Poole
A dual threat with its aerospace business (Pratt-Whitney engines) and defence (mostly missiles) and both are growing. The valuation is not high.
Jim Lebenthal1/3 of its business is in defense, but 2/3 is more of a commercial application. Gives defense exposure plus the boost because of a nascent aerospace cycle.
Gordon ReidReally likes it, as you get aerospace and defense, counter-cyclical business. He'd be comfortable buying at current prices.
Chris Blumas
Jamie Murray '%20fill='%23ffffff'%3e%3cg%20id='Pager'%20transform='translate(423.000000,%201755.000000)'%3e%3cpath%20d='M243.295367,17.286474%20C243.68919,16.9045087%20244.327703,16.9045087%20244.721525,17.286474%20L249,21.4361302%20L253.278475,17.286474%20C253.672297,16.9045087%20254.31081,16.9045087%20254.704633,17.286474%20C255.098456,17.6684393%20255.098456,18.2877274%20254.704633,18.6696927%20L249.35654,23.856763%20C249.159628,24.0477457%20248.840372,24.0477457%20248.64346,23.856763%20L243.295367,18.6696927%20C242.901544,18.2877274%20242.901544,17.6684393%20243.295367,17.286474%20Z'%20id='Path'%20transform='translate(249.000000,%2020.500000)%20scale(-1,%201)%20rotate(-90.000000)%20translate(-249.000000,%20-20.500000)%20'%3e%3c/path%3e%3c/g%3e%3c/g%3e%3c/g%3e%3c/svg%3e)
'%20fill='%23ffffff'%3e%3cg%20id='Pager'%20transform='translate(423.000000,%201755.000000)'%3e%3cpath%20d='M243.295367,17.286474%20C243.68919,16.9045087%20244.327703,16.9045087%20244.721525,17.286474%20L249,21.4361302%20L253.278475,17.286474%20C253.672297,16.9045087%20254.31081,16.9045087%20254.704633,17.286474%20C255.098456,17.6684393%20255.098456,18.2877274%20254.704633,18.6696927%20L249.35654,23.856763%20C249.159628,24.0477457%20248.840372,24.0477457%20248.64346,23.856763%20L243.295367,18.6696927%20C242.901544,18.2877274%20242.901544,17.6684393%20243.295367,17.286474%20Z'%20id='Path'%20transform='translate(249.000000,%2020.500000)%20rotate(-90.000000)%20translate(-249.000000,%20-20.500000)%20'%3e%3c/path%3e%3c/g%3e%3c/g%3e%3c/g%3e%3c/svg%3e)
It had a manufacturing problem, so was put in the penalty box and fell 10 points. Time to buy it.