Defense Stocks to Buy: Raytheon (RTN)
Raytheon (RTN) is one of those companies that does a lot of business with the Saudis. In fact they recently sold them 15,000 anti-tank missiles to Saudi Arabia for roughly $1 billion. The company is the sixth largest military contractor, specializes in making high-tech missiles, advanced radar systems and sensors, defense electronics, and missile-defense systems.
If we slash the size of our forces then missile defense and attack systems become even more critical and we could actually see the cuts leading to increased business for RTN. They are looking to grow their international business and in addition to the recent Saudi order, RTN sold $655 million Patriot missiles to Kuwait and won a $123 million contract from the Republic of Korea Navy to supply the latter with nine Phalanx Weapon Systems.
The headlines might say otherwise, but the real story is that business is solid for Raytheon, and RTN stock is a strong buy right now.