3 Huge Threats Raytheon Can't Ignore
Raytheon (NYSE: RTN) manufactures complex weapons for a dangerous world, helping its stock to easily outpace the S&P 500, as well as its defense rivals, year to date, as investors bet on continued demand for its missile systems and other armaments. Reading through the daily headlines, there's reason to be bullish on continued demand for Raytheon products. Still, there are dangers lurking that could cause turbulence as the company tries to power ahead.
Raytheon has garnered favorable investor sentiment for having a presence in areas that are considered Pentagon priorities, but rivals are nipping at its heels. Northrop Grumman's $7.8 billion purchase of Orbital ATK would not only rocket Northrop past Raytheon to become the fourth-largest U.S. defense supplier, it would also strengthen the company in areas like ground-based missile defense, where Raytheon is strong.
Raytheon-made Phalanx close-in weapons system firing from the deck of the USS Blue Ridge. Image source: U.S. Navy via Flickr.
Source: Fool.com
