5 American Stocks That Will Benefit from the New Cold War

4. Raytheon Technologies Corporation (NYSE:RTX)

Number of Hedge Fund Holders: 45

Raytheon Technologies Corporation (NYSE:RTX) is a Massachusetts-based aerospace and defense company, specializing in systems and services for commercial, military, and government customers worldwide. It operates through four segments – Collins Aerospace Systems, Pratt & Whitney, Raytheon Intelligence & Space, and Raytheon Missiles & Defense. China has advanced military tech, and in times of heightened geopolitical tensions, American stocks like Raytheon Technologies Corporation (NYSE:RTX) will potentially thrive. 

RBC Capital analyst Ken Herbert on July 27 reiterated an Outperform rating on Raytheon Technologies Corporation (NYSE:RTX) but lowered the price target on the stock to $115 from $125 after its Q2 earnings beat. Resilience in the company’s commercial markets made up for the softness in the defense business, the analyst told investors. Raytheon Technologies Corporation (NYSE:RTX)’s 2022 guidance also indicated a significant recovery in the defense business in the second half, which is the primary source of investor concern, the analyst added.

According to Insider Monkey’s data, 45 hedge funds were long Raytheon Technologies Corporation (NYSE:RTX) at the conclusion of Q2 2022, compared to 51 funds in the last quarter. Ken Fisher’s Fisher Asset Management is the largest position holder in the company, with 8.4 million shares worth $808.3 million. 

Here is what Carillon Eagle Growth & Income Fund has to say about Raytheon Technologies Corporation (NYSE:RTX) in its Q1 2022 investor letter:

“Raytheon (NYSE:RTX) outperformed along with other defense contractors on rising geopolitical concerns. Military sales account for more than half of revenue. Key franchise programs include the Patriot Missile and F-35 engine, which have provided visible support through most of the decade.”