Here's Why Raytheon Technologies Shares Are Down 34% Year to Date
Shares of Raytheon Technologies (NYSE: RTX) were down 34.6% in the first half of 2020. Given the weakness in commercial aerospace due to the COVID-19 pandemic, some amount of pressure is to be expected. But the drop could have been much worse if not for a major deal the company completed earlier this year to diversify its revenue stream.
Raytheon Technologies was formed in April when defense contractor Raytheon combined with the aerospace unit of United Technologies, the first defense megamerger in a generation.
The deal closed at a challenging moment for the United Technologies side of the business. That unit, which makes aircraft engines and interiors, gets most of its revenue from commercial sales, and not defense sales. But with the pandemic wiping out demand for air travel, airlines are grounding planes and looking to cut costs, eating into commercial aerospace revenue.
Source Fool.com
