#10 - Raytheon (NYSE:RTX)
When investors think about defensive stocks, the defense industry comes to mind. There are several quality stocks in this sector. But we’ll give a nod to Raytheon (NYSE: RTX). The five-year trajectory for earnings and revenue are bullish. And the company’s forward price-to-earnings of around 15X looks pretty compelling at the moment.
Similar to Lowe’s and Abbott Laboratories, analysts give Raytheon a consensus price target that suggests stock price growth of over 20%. But what’s different for Raytheon is that those price targets are being increased in the past few months. Considering forecasts for a profits recession, that’s a compelling reason to look at RTX stock.
And like many stocks on this list, Raytheon also offers a reliable dividend that it has increased in each of the last 20 years. And with free cash flow now above 2019 levels, the company should have no problem paying the dividend going forward.
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
- $120.99
- Consensus Rating
- Hold
- Ratings Breakdown
- 5 Buy Ratings, 10 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $177.27 (46.5% Upside)
Timing the market falls into the category of “it was easy everybody would do it." Even the most experienced market analysts avoid calling tops and bottoms. It's simply not a viable investing strategy.
And while conviction is an important attribute to have as an investor, being heroic doesn't have to mean putting new money into falling stocks during times of volatility. That doesn't mean you should sell your losses. But it could mean keeping your position size in losing stocks the same while looking to deploy new capital into better opportunities.
And there are always opportunities. In this presentation, we've given you seven stocks to consider investing as you ride out the current bear market. And just as importantly, we've given you some concepts to consider as you perform your own due diligence. That is look for companies that will always have products that are in demand; seek out companies that have strong fundamentals; and enjoy the benefit of getting paid a dividend just for holding a company's stock.
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