5 Defense Stocks to Buy Amid Escalating Geopolitical Tensions

4. Raytheon Technologies Corporation (NYSE:RTX)

Number of Hedge Fund Holders: 45

At the close of Q2 2022, 45 hedge funds were bullish on Raytheon Technologies Corporation (NYSE:RTX) and held stakes worth $1.84 billion in the company.

This July, RBC Capital analyst Ken Herbert revised his price target on Raytheon Technologies Corporation (NYSE:RTX) to $115 from $125 and maintained a buy-side Outperform rating on the shares. On July 27, Wells Fargo analyst Matthew Akers adjusted his price target on Raytheon Technologies Corporation (NYSE:RTX) to $98 from $106 and reiterated an Equal Weight rating on the shares.

On September 21, Raytheon Technologies Corporation (NYSE:RTX) secured a $160 million contract to manufacture Dual Band Radar, or DBR, systems for the U.S. Navy. On September 22, the U.S. Airforce awarded Raytheon Technologies Corporation (NYSE:RTX) a $985 million contract for the supply of Hypersonic Attack Cruise Missiles.

As of June 30, Fisher Asset Management owns more than 8.4 million shares of Raytheon Technologies Corporation (NYSE:RTX) and is the top shareholder in the company. The investment covers 0.57% of Ken Fisher’s 13F portfolio.

Here is what Carillon Tower Advisers had to say about Raytheon Technologies Corporation (NYSE:RTX) in its first-quarter 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.”