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. Because of its large market share in commercial aerospace, Raytheon is well-insulated from the general population. US Defense priorities also depend on Raytheon's ability to perform rigorous, high-touch R&D quickly enough to be able compete with other great power nations.
The defense industry has an unbeatable opportunity to benefit from a trend that could transform how nations defend against great-power conflict. It is also likely to have the potential to change US military priorities, as well as the commercial aerospace market. Raytheon, with its competitive moat, is worth a look in times of market turmoil.
Stocks could be boosted by President Biden's trip to Ukraine
The White House signed off on sending the Patriot missile system to embattled Kyiv, Ukraine, before Russia launched its brazen invasion of the country last month. The battle in Ukraine is symbolic but it provides future Raytheon customers with a strong indication of the effectiveness of its defense products at protecting their nations from attack.
Raytheon may find this a good move in the long-term. This is especially true if the country-states that have purchased its goods are able to increase their defense spending.
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 level of battlefield effectiveness is important in a world where countries are trying to retool their armies and refocus them more on diplomacy and non-confrontational police and diplomacy than on the kind of combat that has been waged by warring superpowers over centuries.
Another transformational shift is the emergence of drones as an important new threat to air and missile defense capabilities. Drones are extremely maneuverable and small. It is therefore very difficult for traditional air and missile defence systems to detect them, as well those using ground sensors.
Raytheon developed drone defense radars that can track these elusive and stealthy weapons of war. Raytheon's V3 radar, which is part of the Navy’s Ford-class aircraft carrier is already in use and is expected to be activated this year.
It is also developing V2 and V3 versions for its SPY-6 radars, which will be fitted 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.
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 has plans to put the system on every carrier built by HII in five years' time, despite all the challenges.