#2 - Raytheon (NYSE:RTX)
Raytheon is next on our list of defense stocks to buy. Raytheon (NYSE:RTX) manufactures the Stinger air-defense systems which are also being used in Ukraine. However, missile defense systems currently make up a significant part of the overall U.S. defense budget as the country assesses threats from countries that have nuclear capability. The company also has exposure to the commercial aerospace sector, but for now it’s the defense component that holds the most interest.
RTX stock jumped approximately 8% after the invasion but has given up most of those gains. One reason for that is a Department of Justice investigation into the company’s hiring practices.
Like Lockheed Martin, Raytheon has had two bullish price target upgrades since the invasion. The most prominent being from Morgan Stanley (NYSE:MS). The investment bank already had a bullish target of $118 but boosted it to $124. After the current selloff, that represents a 29% increase in RTX stock.
Investors can also count on Raytheon to pay a reliable dividend that currently yields just over 2%. The company has increased the dividend in each of the last 29 years.
About RTX
RTX Corporation, an aerospace and defense company, provides systems and services for the commercial, military, and government customers in the United States and internationally. It operates through three segments: Collins Aerospace, Pratt & Whitney, and Raytheon. The Collins Aerospace Systems segment offers aerospace and defense products, and aftermarket service solutions for civil and military aircraft manufacturers and commercial airlines, as well as regional, business, and general aviation, defense, and commercial space operations.
Read More - Current Price
- $107.34
- Consensus Rating
- Hold
- Ratings Breakdown
- 4 Buy Ratings, 11 Hold Ratings, 2 Sell Ratings.
- Consensus Price Target
- $98.33 (8.4% Downside)
