Raytheon (NYSE: RTN) is a strong company with a healthy order book, yet it is also currently trading at a historically high multiple to earnings. So is now a good time to buy?
The company is a $24 billion-sales maker of precision weapons, electronic warfare systems, sensors and radars primarily for the U.S. and foreign governments, with an impressive 31% of 2016 sales coming from international buyers. Investors have grown increasingly interested in U.S. defense majors this year, helping to send shares of Raytheon up about 33% year-to-date, and the company is seen as particularly attractive because its key products are all in areas that the Pentagon is currently emphasizing.
Raytheon corporate headquarters, Waltham, Mass. Image source: Raytheon
Source: Fool.com