CA - Raytheon: Customers Out Of Money Company Selling Weapons For Wars Past
2024-04-26 05:39:56 ET
Summary
- Raytheon's stock price has underperformed compared to other defense industry peers, despite the war in Ukraine being seen as an opportunity for weapons manufacturers.
- Raytheon's signature weapons may no longer be suitable for modern battlefield needs, which could impact its long-term growth prospects.
- Raytheon's financial results in 2023 showed deterioration, with less impressive revenue growth and a decline in net earnings. Q1 2024 provides hope for short-term gains.
- Beyond the short term, NATO members face tough fiscal and economic choices, while an end to the war in Ukraine will likely flood the rest of the global weapons market with deeply discounted Russian weapons that are currently produced in high volumes.
Investment thesis: The war in Ukraine has been heralded as a golden opportunity for Western weapons manufacturers. Raytheon's ( RTX ) stock price does not seem to share in the spoils of war, given that it underperformed the S&P 500 in the past five years....
Raytheon: Customers Out Of Money, Company Selling Weapons For Wars Past