Is Raytheon Technologies Still a Buy?

With Raytheon Technologies (NYSE: RTX) having released its first-quarter earnings report, it's become clear the recovery in the commercial aerospace market has been a bit slower than many anticipated going into the quarter. That said, it's important not to get mired in quibbling over the pace of a long-term recovery when it's in its early stages. Recovery is coming, and it's a case of "when, not if" commercial air travel comes back. In this context, Raytheon's recent earnings help highlight why the stock is an excellent buy for long-term investors. Here's why.

The case for buying Raytheon Technologies stock rests on the idea that its defense businesses will support the company through a difficult period. At the same time, the commercial aerospace-focused businesses will embark on a multi-year recovery from a trough in 2020.

It's not an exact split, but its defense operations are overwhelmingly in the former Raytheon Company businesses, Raytheon Missiles & Defense (RMD) and Raytheon Intelligence & Space (RIS). Meanwhile, the commercial aerospace businesses are in the former United Technologies business, Collins Aerospace and Pratt & Whitney.

Source Fool.com