Raytheon Technologies (NYSE: RTX) is doing well, but it's not crushing it. A glass-half-empty view sees the current challenges implied by that statement and concludes that the company isn't delivering as expected. However, a glass-half-full perspective sees the opportunity for significant revenue and margin expansion when Raytheon solves its issues. Here's what you need to know before buying the stock.

The challenges and opportunities in Raytheon's business can be seen in the table below. Note that profit declined in both defense-focused businesses in the first quarter. The overwhelming majority of profit growth is set to come from the commercial aerospace-focused segments in 2023, albeit with a slightly disappointing margin performance at Pratt Whitney, which makes aircraft engines and after-market parts.

These facts might worry investors buying the stock with expectations of a ramp-up in defense spending and the upside potential coming from the recovery in commercial aerospace as air traffic rebounds. 

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Source Fool.com