NYSE:RTX
Raytheon (RTX)
180.99
+1.58 (0.88%)
as of Jun 5, 2026, 8:00:00 pm Market Open.
309 watching
Financials 
Technical Analysis 0
Investor Insights
Jun 6, 2026, 12:00 amThis 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.
Consensus
Buy
Valuation
Overvalued
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Premium contentPAST TOP PICK
(A Top Pick Nov 04/21, Down 6%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with RTX has triggered its stop at $83. To remain disciplined, we recommend covering the position at this time. Combined with our previous buy recommendation, this will result in a net investment gain of 12%. We will look for better opportunities.
Defense
TOP PICK
Aerospace rebound should lift the stock 20% per year through 2024. $110 price target, benefiting from the turnaround in the economy. Yield is 2.33%. (Analysts’ price target is $102.69)
Bruce MurrayOwned
Defense
Premium contentTOP PICK
Stockchase Research Editor: Michael O'Reilly As US defense spending will continue to be strong, despite supply chain issues created by the pandemic, we reiterate RTX as a TOP PICK. Although Boeing 787 sales have slowed, management still feels confident to provide earnings guidance of $4.10-$4.20, higher than the previous range of $3.85-$4.00. This will help bring the PE to 18x earnings compared to peers at 23x. Analysts expect earnings to grow over 24% annually over the next five years. The dividend is also attractive and is expected to represent under 50% of cash flow next year. We continue to recommend a stop loss at $83, now looking to achieve $103.50 -- upside potential over 16%. Yield 2.32% (Analysts’ price target is $103.24)
Defense
Premium contentPAST TOP PICK
BUY
He's adding to his holdings. He expects it to earn $5/share this quarter or a reasonable 16-17x PE. The aerospace business is starting to return to normal post-Covid, so there's a lot of runway ahead.
Gordon ReidOwned
Defense
TOP PICK
RTX is half-defence, half-aerospace whereas peers operate in one of the other. Therefore, this mix offers stable cash profile and can operate counter-cyclically. Can still buyback shares. Cost structure changes will raise earnings growth as well as a rebound in air traffic. It's far less cyclical than competitors. (Analysts’ price target is $101.56)
Chris BlumasOwned
Defense
TOP PICK
52-week high today, lots of room to go. Very well run. Aerospace market is coming back quickly. 25,000 planes need replacing in the next 10 years. Most advanced defense company in terms of cybersecurity and cyberwarfare. Best reputation. Long, successful road ahead. Yield is 2.26%. (Analysts’ price target is $101.56)
John O'Connell, CFAOwned
Defense
BUY
Likes it. An aerospace company in defence. The aerospace part has not been doing well, but it is starting to get legs. The combined operation is still undervalued. They spin off a lot of cash. Should support growth in their capital allocation policy leading to higher dividends and stock buybacks.
Gordon ReidOwned
Defense
HOLD
They merged with United Technologies, so half their business is defence and half commercial aerospace (including Pratt-Whitney engines). The overhang comes in international air travel; so far there's really only domestic travel. For this to happen, vaccine rates must increase to allow cross-border travel. Vaccine passports help. When planes don't fly, they don't need service on planes which benefits Raytheon. The stock is expensive now, but she will hold onto it. International travel will increase their revenues, but won't bounce back perhaps till 2023-4. Their defence business remains steady. RTX is in strong shape, so it can weather this period.
Christine PooleOwned
Defense
BUY
You haven't missed the boat. Tremendous latent value, because aerospace sector has been held back by Covid and problems at other airlines. We'll move past the reluctance to travel and get back to "normal". Airlines will buy products and have them serviced, which is what RTX does. Room to grow, good cashflow prospects. A buy here.
Gordon ReidOwned
Defense
HOLD
In attractive segments of defense. Suffered last year on commercial aerospace. Seeing a pickup in domestic travel. Transborder travel is lagging, but when it returns, it will be beneficial. Generating a lot of cashflow. Dividend is safe and may be increased over time. (Analysts’ price target is $101.00)
Christine PooleOwned
Defense
PAST TOP PICK
(A Top Pick Jun 17/20, Up 37%) It's waiting for things to line up to do well on a fundamentental basis. Their aerospace business lags, but aerospace in general will come back. Defence is their stable business, based on dependable US defence budgets. This creates a lot of free cash and could lead to share buybacks and dividend hikes.
Gordon ReidOwned
Defense
PAST TOP PICK
(A Top Pick Jun 17/20, Up 30%) Lifted by the revival in commercial air travel during this reopening and will perform even better going further. Their traditional defence business keeps them stable and did okay throughout the pandemic. $7/share is quite possible. Increase increases in their dividend and share buybacks.
Gordon ReidOwned
Defense
Premium contentPAST TOP PICK
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