Raytheon shares can be considered one of the promising assets of the stock market in the industrial sector. The industrial giant's securities are notable for their resilience to crisis periods. You will find out how promising investing in this company is if you study its financial indicators and analysts' forecasts.
Raytheon is one of the largest American companies for the production of military and commercial equipment. It was founded in 1922 by two engineers named William Raytheon and Herbert Smith. They founded a small company called American Appliance Company, which produced fixtures for home lighting. A few years later the company was renamed Raytheon Manufacturing Company.
Raytheon is also actively involved in projects and programs to address global environmental and cultural heritage issues. Raytheon does everything it can to support development in security, military technology and space projects. It attracts the best engineers to offer the world advanced solutions to the most complex problems.
Raytheon is one of the most important military-industrial corporations in the world today. It specializes in the development and production of military equipment, aviation and space technology, information security and counterterrorism. It is also engaged in research and development in the field of industrial electronics, biological and space technologies. Some of Raytheon's products are used to protect government and military secrets, counterterrorism operations, and maritime security and air traffic control.
Today, Raytheon provides a full range of services and solutions for military and civil defense, as well as for the development and support of infrastructure and information systems. The company specializes in the following areas: munitions manufacturing, space, information security, intelligence, application software development, design and construction of military instrumentation and equipment.
Demonstrating amazing resilience, Raytheon and United Technologies have become a unified, powerful force in the aerospace and defense industry since merging in 2020. This alliance has been rewarded with a consistent dividend increase from $0.475 to an impressive $0.55 per share for Raytheon Technologies against economic uncertainty, demonstrating that tremendous growth can be achieved in a challenging environment.
Raytheon offers a dividend yield of 2.2%, above the 1.6% available today from the S&P 500 index fund. This provides consistent returns for investors. What's more, the growth in orders indicates that Raytheon has more than enough income to cover the dividend. The business is very likely to grow in the coming years, despite factors such as inflation and economic cycles hindering progress in the short term.
Raytheon has proven its value in 2022, posting impressive growth of 17% year-over-year and 27% from its September lows. Despite a high estimate of 33 times trailing earnings, double sales, and 44 times free cash flow, defense stocks remain an attractive option for dividend investors due to America's long-term investment in its arsenal.
By the end of 2022, Raytheon Technologies aims for up to 54% returns from its two commercial aerospace divisions, Pratt & Whitney and Collins Aerospace. However, given General Electric's extensive involvement in this market sector, they could outperform Raytheon in 2023.
At the time of the Raytheon stock price forecast (December 23, 2022), the stock was quoted at $98. In 2023, given the headwinds, this asset could be trading at $100. By 2025, the corporation's securities have the potential to rise to $150. The company operates in a stable industry and offers products that are heavily used in global industry. This allows investors to generate income even in a volatile market.
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