Raytheon News
As a major aerospace and defense company, Raytheon has a unique position that allows it to thrive even when the economic cycle isn't going its way. It is shielded from the general economic cycle due to its large share in the commercial aero business and because US Defense priorities depend upon it being able perform grueling, high touch R&D at the speed that's necessary for success in a world where there are great power rivalries.
For example, the defense sector is in a unique position to profit from a transformative trend that is set up to transform the way nations protect themselves against great-power conflicts. It also has the potential for a game changer in US military priorities and commercial aviation demand. Raytheon's competitive moat makes it a good company to consider in times when markets are turbulent.
President Biden's Visit to Ukraine Could Boost Stock
Before Russia invaded Ukraine last month, the White House approved the sending of the Patriot missile system to Kyiv. Even though the battle in Ukraine has a symbolic meaning, future Raytheon defense clients can see that their products are effective at protecting their nation against attack.
Raytheon could see this as a long-term benefit, particularly since successful deployments to Ukraine would lead to significant increases in defense spending from the nation-states who purchase its goods.
This could be a catalyst for a faster rise in RTX stock market prices as nation-states who are looking to overhaul their arsenals try to find weapons that have been successfully used on the battlefields occupied by war-torn states. This kind of battlefield effectiveness is a big deal in a world where nations are seeking to retool their armed forces and refocus them on non-confrontational policing and diplomacy, rather than the type of combat that has been fought by warring superpowers for centuries.
Another significant shift is the appearance of drones. They pose a serious threat to our air and missile defense systems. Drones not only are small but also very maneuverable. This makes them difficult to detect using traditional air- and missile-defense systems as well ground sensors.
Raytheon has created drone-defense radars capable of tracking these stealthy, elusive weapons. The company's V3 radar is already a part of the Navy's Ford-class aircraft carrier, and it is scheduled to be activated later this year.
It's also producing V2 versions and V3 of the SPY-6 radar that will be used on future destroyers. Lockheed Martin will manage the ships' Integrated Air and Missile Defense Systems (IAMD), which will include four SPY-6 radars.
This makes it one among the most complex and sophisticated radars the military ever saw, and a key element to its overall effectiveness. Mills said that Raytheon is continuing to plan to install the system onto all the carriers to be built by HII within the next five year, despite the challenges.