Raytheon – High Conviction Buy

Raytheon, (listed on the New York Stock Exchange) is now under Algo Engine buy conditions and was added into our US S&P100 model portfolio, prior to last week’s earnings result.

Raytheon is a major U.S. defense contractor and industrial corporation with core manufacturing concentrations in weapons, military and commercial electronics. In 2020 the company will merge with United Technologies and we anticipate the merger will help unlock value for shareholders and underpin the growth story for many years to come.

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The stock trades 19x earnings and a 2 % dividend yield. A combination of the upcoming merger and the large scale of future share buybacks has Raytheon on our “high conviction” buy list.

Author: Leon Hinde

Leon has been working in the financial services industry for 18 years in management and advisory roles. Leon has extensive experience in general advice and dealings involving securities and derivative financial products.

PS 146 Securities & Derivatives, ADA 1 & 2 accreditation, Responsible Manager Certificate. Leon is authorised to provide financial product advice and deal with respect to the following financial products:

· Deposit Products
· Securities
· Derivatives
· Interest in managed investment schemes; and
· Government debentures, bonds and stocks