Raytheon News
Raytheon enjoys a unique position in the aerospace and defense industry that allows it thrive even when the economy isn't doing well. 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.
The defense industry can benefit from a revolutionary trend that will change the way countries defend themselves against wars of great power. This has the potential be a game-changer for US military priorities. Raytheon has this kind of competitive moat. I recommend that you look closely at Raytheon during market turmoil.
The Visit of President Biden to Ukraine Could Help Stocks Boost
Before Russia invaded Ukraine last month, the White House approved the sending of the Patriot missile system to Kyiv. While the battle for Ukraine is symbolic, it gives Raytheon's future clients a strong indication that its products are effective in protecting their nations against attack.
That could be a good thing for Raytheon in the long run, especially because a successful deployment to Ukraine would mean a significant increase in defense spending by the nation-states that purchase its wares.
This could drive a rise in RTX stock values as nation states look to update their arsenals. This is an important aspect of a world in which nations are looking to retool and focus their armed forces on non-confrontational politics and diplomacy rather than fighting the same type of battles that have been fought for centuries by warring great powers.
Another significant shift is the appearance of drones. They pose a serious threat to our air and missile defense systems. Drones can be maneuvered well and are very small. They are difficult to detect with traditional air and missile defense systems as well as ground sensors.
Raytheon's drone-defense radars can be used to track these stealthy and difficult weapons of war. The V3 radar developed by Raytheon is part of Navy's Ford-class aircraft carrier. It will be activated later this summer.
It is also developing V2 or V3 versions to its SPY-6 Radar, which will eventually be mounted on future destroyers. The SPY-6's four radar faces will be integrated with the ships' Integrated Air and Missile Defense (IAMD) systems, which are managed by Lockheed Martin.
It is one of the most sophisticated and specialized radars ever built by the military, which is crucial to its effectiveness. Mills stated that Raytheon plans to install it on all the carriers being built by HII during the next five years, despite the obstacles.