2024-04-10 19:08:26 ET
Summary
- Maintaining a strong core of long-term equity holdings with generous capital return policies is one of the surest ways to achieve alpha, Raytheon (RTX) is a great stock for this.
- Raytheon Technologies has maintained an admirable capital return policy through size, diversification, and cost-cutting.
- Raytheon's unique product mix, including the PATRIOT missile system and NASAMs, has played a crucial role in Ukraine's defense against Russia.
- The desirability of Raytheon's products on both the defense and commercial side of the business will converge nicely given the geopolitical threat environment and persistent economic strength.
About six months ago, Raytheon Technologies ( RTX ) was in Wall Street's proverbial doghouse because of an engine issue requiring major fixes, major financial hits, and a major inconvenience to its customers. At the time, I pointed out that finding out about the issue this way, instead of in a tragic news headline, was much preferred. Raytheon has had a bout of very strong performance lately. I think it will continue, and I believe that this firm is one you should own for the long haul, through thick and thin. Recent events have proven that sentiment correct....
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For further details see:
Raytheon: Tailwinds From A Defense Boom Will Converge Nicely With Economic Strength