Raytheon (RTX-N)

It depends on how much Washington will spend on defence and that debate is happening now. Problem is that defence contracts come and go without warning. Too volatile for him, so he's never owned it. That said, tensions in places like south Asia vs. the US will drive demand for RTX's products.

Current price pullback has occurred for good reason - glitch in new engine. 
Concerns for payments required to customers to fix problems.
Management losing credibility.
Risky buy at this time. 

It still yields 3%. There will be a credibility gap between what they said about the problem with their engines and the reality of them. He expects a lot of bad blood between RTX and the airlines who will lose some flight time because of this. Trades at 15x PE and will go lower, and may be then you can buy it.

Last quarter saw pullback in share price.
Defective metal used in production being fixed.
Defense spending on rise with conflict in Ukraine.
Still owns shares and will continue to own.
Attractive dividend yield ~3% (very sustainable).

Problems with some fan blade components, not as bad as it sounds and limited financial danger. He added to his position in the mid-$80s. He'd buy here. Very attractive on free cashflow yield basis.

It had a manufacturing problem, so was put in the penalty box and fell 10 points. Time to buy it.

Half of its business is in the commercial air space and half in defense. It had some issues with the Pratt-Whitney engines which caused a sell off. However this shouldn't be a long term issue. The parts side is good and spending on defense will likely be maintained.

Likes it, but pull the trigger at $80-83.

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.

Mildly 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%.

Their 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.

Good 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. 

Owns 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. 

Reasonable valuation. Going forward, potential for earnings growth and multiple expansion.

Unfortunately, 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.