Should You Think About Buying Raytheon Technologies Corporation (NYSE:RTX) Now?

Should You Think About Buying Raytheon Technologies Corporation (NYSE:RTX) Now?

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<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Raytheon Technologies Corporation (NYSE:RTX) saw significant share price movement during recent months on the NYSE, rising to highs of US$70.54 and falling to the lows of US$56.68. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Raytheon Technologies’ current trading price of US$61.44 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Raytheon Technologies’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.” data-reactid=”28″>Raytheon Technologies Corporation (NYSE:RTX) saw significant share price movement during recent months on the NYSE, rising to highs of US$70.54 and falling to the lows of US$56.68. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Raytheon Technologies’ current trading price of US$61.44 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Raytheon Technologies’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content=" Check out our latest analysis for Raytheon Technologies ” data-reactid=”29″> Check out our latest analysis for Raytheon Technologies

What is Raytheon Technologies worth?

Good news, investors! Raytheon Technologies is still a bargain right now. My valuation model shows that the intrinsic value for the stock is $99.28, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. Another thing to keep in mind is that Raytheon Technologies’s share price may be quite stable relative to the rest of the market, as indicated by its low beta. This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again.

What kind of growth will Raytheon Technologies generate?

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earnings-and-revenue-growth

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to more than double over the next couple of years, the future seems bright for Raytheon Technologies. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What this means for you:

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Are you a shareholder? Since RTX is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.” data-reactid=”51″>Are you a shareholder? Since RTX is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Are you a potential investor? If you’ve been keeping an eye on RTX for a while, now might be the time to enter the stock. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy RTX. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.” data-reactid=”52″>Are you a potential investor? If you’ve been keeping an eye on RTX for a while, now might be the time to enter the stock. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy RTX. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. For instance, we've identified 5 warning signs for Raytheon Technologies (2 make us uncomfortable) you should be familiar with.” data-reactid=”53″>With this in mind, we wouldn’t consider investing in a stock unless we had a thorough understanding of the risks. For instance, we’ve identified 5 warning signs for Raytheon Technologies (2 make us uncomfortable) you should be familiar with.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="If you are no longer interested in Raytheon Technologies, you can use our free platform to see our list of over 50 other stocks with a high growth potential.” data-reactid=”54″>If you are no longer interested in Raytheon Technologies, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.” data-reactid=”59″>This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.

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