NYSE:RTX

Raytheon (RTX)

180.99
+1.58 (0.88%)
as of Jun 5, 2026, 8:00:00 pm Market Open.
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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
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Valuation
Overvalued
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BUY
He kicks himself for not buying this. They just reported great numbers, because they found many more engineers. Are seeing a lot of orders from defence and commercial businesses. Are enjoying an aerospace bull market, too.
HOLD
Half defense, half commercial aerospace. A portfolio position of 5% is higher than her usual weighting of 3%, so trim a bit. Great company, high quality, strong balance sheet. Likes the areas it's in. The world is a dangerous place. Air travel and plane orders ramping up. Core position.
WAIT
They got caught up in the budget crisis. The CEO is doing a great job, but wait until the debt ceiling crisis in Washington hits next Thursday.
PAST TOP PICK
(A Top Pick Jan 06/22, Up 13%) Defense spending is a bit in flux with the Republican House. But the world is more roiled. Ukraine, Taiwan, China. Patriot missile for Ukraine. Commercial aerospace side will expand as airlines get more footing. Well positioned.
BUY ON WEAKNESS
Likes prospects and has been a previous top pick. Waiting for shares to fall to low $90's before buying. Half defense and half commercial airline business. Conflicts around the globe are good for the business.
BUY
He has recommended this before and still likes it. Likes it for being a hybrid of defense and aerospace (66% of their business). Defense has always been a steady business, but aerospace holds great potential. They had a 5-year plan in 2020, growing revenues at 6-7% annually and increase margins, and create $10 billion of free cash flow annually by 2025, and they are on track for that.
TOP PICK
Conflict in Europe looks to point towards increasing defense spending. Company is 1/2 commercial (aviation) and 1/2 deference business. Increasing travel after pandemic is good for the business. Procurement rules prevent much inventory from budding up on defense side (good for cash flow).
BUY
RTX vs. HON for a 2-year hold? He owns both. Both heavily involved in aerospace. HON has done extremely well, latest report hit it out of the park. Increased organic growth and margins. Success means HON is getting a bit expensive. RTX has more potential, ability to grow free cashflow over next 2-3 years, a good buy. Defense side is "sticky".
PAST TOP PICK
(A Top Pick Nov 23/21, Down 3%) Decent return compared to overall market the last 12 months. Prime supplier of new Airbus engines. Large government contracts very valuable. Fears of recession impacting stock. Good time to buy shares at current price.
BUY
Honeywell question A fine conglomerate involved in automation and industrials. Well-run, particularly in capital allocation. Trades at a premium. But he prefers Raytheon, which is slightly different--a mix of aerospace and defence--but there's room for multiple expansion around 15x PE now. Both companies have decent growth outlooks, but Raytheon is better.
BUY
Interesting company that has good balance in revenue models. Defense contracts will be valuable in today's uncertain world. Trading at a fair market multiple. Good time for investors to buy. Nature of business means long term payout of business contracts with the government.
BUY
Company has recently evolved into defense powerhouse. Business also has earnings from travel related technology. Currently growing revenue at 6-7%. Margins expanding and expecting higher stock price soon.
BUY
Half-defence and half-aerospace. They makes airplane engines and plane parts, so it's benefiting from the travel revival. In defence, they specialize in missile defence and cyber security--good areas. The company sees 3-4% growth here and she believes that, given the Ukraine war. (Analysts’ price target is $110.78)
PAST TOP PICK
(A Top Pick Oct 12/21, Up 7%) Still likes. Undervalued. He'd buy today.
BUY
Raytheon vs. General Dynamics When analyzing a company, look at its peers as well. In this case, Raytheon offers a buffer to only the defence business--commercial aerospace. Two-thirds of revenues come from commercial, the rest in defence. The former is a great opportunity because more planes will be produced as the economy improves. Meanwhile, defence offers stability. Prefers Raytheon.
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