Should You Consider Buying Raytheon (RTX) Shares?

ClearBridge Investments, an investment management firm, published its “Dividend Strategy” first quarter 2022 investor letter – a copy of which can be downloaded here. The ClearBridge Dividend Strategy outperformed its S&P 500 Index benchmark during the first quarter. On an absolute basis, the Strategy had gains in three of 11 sectors in which it was invested for the quarter. The main contributors to Strategy performance were the energy, industrials, and utility sectors. The materials, IT, and consumer discretionary sectors, meanwhile, were the main detractors. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, ClearBridge Investments Dividend Strategy mentioned Raytheon Technologies Corporation (NYSE:RTX) and explained its insights for the company. Founded in 2020, Raytheon Technologies Corporation (NYSE:RTX)  is a Waltham, Massachusetts-based multinational aerospace and defense conglomerate with a $155.3 billion market capitalization. Raytheon Technologies Corporation (NYSE:RTX)  delivered a 21.16% return since the beginning of the year, while its 12-month returns are up by 33.73%. The stock closed at $104.27 per share on April 14, 2022.

Here is what ClearBridge Investments Dividend Strategy has to say about Raytheon Technologies Corporation (NYSE:RTX) in its Q1 2022 investor letter:

“Our material overweight to aerospace and defense (~5% in Dividend Strategy vs ~1.5% in the index) was another large contributor to performance in the quarter. Raytheon (NYSE:RTX) performed well. Our investment in the company was obviously not predicated on war breaking out in Europe. Rather, they both embody many of the core attributes we look for in all our companies. The company have favorable long-term growth outlooks that should enable them to compound earnings and dividends for years to come. Raytheon has been a long-term holding and benefits from solid positions in both defense and commercial aerospace. The defense business provides a stable and predictable foundation of recurring revenues while the commercial aerospace business offers leverage to recovering travel as the world bounces back from COVID-19.”


Our calculations show that Raytheon Technologies Corporation (NYSE:RTX) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Raytheon Technologies Corporation (NYSE:RTX) was in 50 hedge fund portfolios at the end of the first quarter of 2022, compared to 48 funds in the previous quarter. Raytheon Technologies Corporation (NYSE:RTX) delivered a 13.88% return in the past 3 months.

In March 2022, we published an article that includes Raytheon Technologies Corporation (NYSE:RTX) in 10 Defense Stocks US Senators Love. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

Disclosure: None. This article is originally published at Insider Monkey.