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
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Valuation
Overvalued
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BUY ON WEAKNESS
It reports next week. A great opportunity to buy now and will be a great reopening trade. He likes their merger. He targets $93, which was pre-Covid levels.
TOP PICK
The defence contractor makes up 1/3 of business. The commercial aerospace side is 2/3 of their business which has suffered through 2020. Order books are filling up and things are changing. Priced very attractively right now. Should make $5.50-$6.00 per share. Dividends and buy backs should increase. A good industrial reopening trade. (Analysts’ price target is $84.17)
BUY
RTX vs. LMT vs. GD When analyzing a company, you also want to analyze its peers. This is the case with Lockheed Martin. Instead, look at General Dynamics. They acquired CSRA, entrenched in cyber defense, and this is where corporate and government money will be invested. Also see Raytheon, a hybrid of a commercial application with a defense contractor. RTX has great promise, undervalued, considerable cashflow in the future.
BUY
His favourite in the industrial space is Raytheon, in aerospace and defence. RTX is undervalued and should do well.
COMMENT
A big option is expiring soon. Option: not good. RTX is under pressure, because China will punish any company supplying defence to Taiwan. But he expects them to gave a good quarter.
BUY
Wonderful promise, you just need patience. Held back because of commercial aerospace exposure. Longer term, as things start to normalize, this company has lots of legs. Ton of free cash flow, which should get back to the shareholder and further bolster the price.
BUY
Defence is doing exceptionally well, plus it has aerospace and security exposure. Exceptionally well run.
BUY
Great promise, but being held back by exposure to US commercial aerospace. Long-term, we'll get back to normal. After 9/11, predictions were negative about flying too. Regulated Covid testing will help. At $60, has earnings power at $7-9 EPS. Cheap. Cash flow expectations are exciting. Be patient and it will reward you.
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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly US defense spending will continue to be strong, despite pandemic issues and RTX is well positioned for it. The company recently reported over $10 billion in defense product bookings and a $73 billion order backlog. True, it has been hampered by the pandemic due to a slowdown in its aerospace product business thanks to supply chain issues and reduced demand from airlines. We like the relatively cheap forward PE of 16 and the 24% growth in sales over the past quarter. The dividend is also attractive. We like the entry level here with upside towards $76 -- potential gain of 25%. We would consider a close below the gap at $52 as a stop loss point. Yield 3.17% (Analysts’ price target is $76.25)
BUY

Quite high on it. Near term bumps in the road. UTX is highly correlated with the aerospace business. Raytheon is more insulated. Together, sees an $8-9 rise in stock price. Thinks they can generate a lot of cash. You might have to show a bit of patience with it. It will do well once the economy gets its footing.

COMMENT
The outcome of a merger with United Technology, which had previously spun out their elevator division. She owns this as she held United previously and will continue to hold it. COVID-19 has had a negative impact on their airplane engine division. With lower flying time, there is less repair work required as well. The defense space is still doing well. Eventually air travel will resume and will remain attractive long term.
TOP PICK
A product of a recent merger with United Technologies. It gives you a solid industrial company. They spun out the OTIS elevator division. They have cyber security and missile technology. They have stable and predictable sources of cash. It is trading at very reasonable price multiples. They are going to generate over $5 billion in free cash flow. There is a great future for this combined company. Yield 2.81% (Analysts’ price target is $74.76)
DON'T BUY
Performance is flat and is declining vs. the S&P, which are flags. If the economy really ramps up, these industrial stocks will do well, but he doesn't own this space. He prefers healthcare. A lot depends on the November vote and the kind of military spending Washington will plan. RTX is starting to approach its 200-day moving average, but that could be a ceiling.
PAST TOP PICK

(A Top Pick May 13/19, Down 34%) They just completed the UTX merger. It's struggling a little, but its defence business will support the dividend. Management has always been highly regarded. The Boeing Max problems don't help. He will hold onto this and remains confident. The stock price reflects current problems, but positive surprises and the good management will deliver satisfactory revenues.

HOLD
A company they own. The defense segment will be a very defensive holding. Their aerospace segment will suffer as their parts will in less demand. Also, new orders are likely to slow. The company is well managed with a strong CEO and balance sheet. They will continue holding it.
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