Raytheon News
Raytheon is a large aerospace and defense company that has an unbeatable position. This allows Raytheon to prosper even in difficult economic times. Because it holds a large part of the commercial aerospace industry, Raytheon is protected from the rest of the economy. Additionally, US Defense priorities depend on Raytheon being able conduct rigorous, high-touch R&D with the speed required to succeed in a world of 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's competitive moat makes it a good company to consider in times when markets are turbulent.
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. Although the battle in Ukraine was symbolic, future Raytheon clients will see a strong indicator that Raytheon's products are capable of protecting their countries 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 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 has created drone-defense radars capable of tracking these stealthy, elusive weapons. 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. 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. Despite the challenges, Mills said, Raytheon is moving ahead with plans to install the system on all of the carriers that are scheduled to be built by HII in the next five years.