Raytheon ($RTX: $88.06): Ready, Willing And Able For The Second Cold War
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- The heating up Cold War between the United States and China will require a massive investment and pivot by the United States toward new strategies, weapons and technologies and Raytheon has the right portfolio of products to benefit.
- Raytheon’s merge with United Technologies resulted in it having one of the more robust and competitively competent commercial aerospace capabilities in the world. The marriage is working well so far.
- The changing demands of state competition in an age dominated by the digital transformation is requiring unprecedented collaboration with the private sector for US capabilities to catch up to where they need to be, Raytheon will be huge here because of Space, Cyber and Missile Defense.
- The recent testing of a hypersonic missile by China concerned a lot of folks. Raytheon is one of the undisputed leaders in hypersonic weapons and missile defense which should be another catalyst for growth.
- The stock’s recent merger with United Technologies is taking a while to play out favorably given the delayed return of international travel, but nonetheless, the logic of the tie-up is pretty iron-clad and we believe it will pay off in the medium to long-term as travel normalizes.
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