This Defense and Aerospace Stalwart Has Stumbled But Don't Count it Out
(NYSE: RTX) hasn't gotten much love from Wall Street lately. The defense and aerospace company is dealing with the fallout of an expensive Pratt and Whitney aircraft engine defect. Contaminated powder metal in an estimated 1,200 engines made between 2015 and 2021 could cause the engines to wear and crack over time.
The company took a $3 billion pre-tax earnings charge in September, and shop repairs could run RTX's total costs to $7 billion when all is said and done. It's a major blemish for a company that's performed well for decades, marked by 30 consecutive years of dividend growth.
RTX could take a few years to work through its issues, but don't miss the forest for the trees. The company's firm footing in the defense and aerospace fields makes the stock a potential buy for long-term investors willing to give management time to right this ship.
Source Fool.com
