Raytheon Company setting up bullish pattern

Raytheon Company setting up bullish pattern

Company BackgroundRTN Tactical Investor Trend Score
[color-box color=”green”]Raytheon Company, together with its subsidiaries, is a technology Company that specialises in defence and other Government markets. The Company
develops products, services, and solutions in markets: sensing; effects; command, control, communications and intelligence (C3I); and mission support, as well as cyber and information security. [/color-box]The Company operates in four segments: Integrated Defense Systems (IDS); Intelligence, Information, and Services; Missile Systems, and Space and Airborne Systems. The Company serves both domestic and international customers, as both a prime contractor and subcontractor on a portfolio of defence and related programs primarily for Government customers. The Company’s products include Global Integrated Sensors, Integrated Air & Missile Defense, Cybersecurity and Special Missions, Global Training Solutions, Land Warfare Systems, Advanced Missile Systems, Tactical Airborne Systems, Advanced Missile Systems and Electronic Warfare System. Continue reading for more Info

Raytheon_Company_key_statistics

RTN earnings per share chart

RTN dividends chart

[color-box color=”yellow”]Our Tactical Investor Trend Score determines whether a stock is in a bullish or bearish trend. Any score above 5 illustrates that the stock is trending upwards and vice versa.  RTN Has a score of 6, which means it is in a slightly bullish trend. This bodes well for the stock as the markets are currently pulling back and the stock is holding up fairly well compared to the rest of the market.[/color-box]
200-day Performance of Peer Group

 

RTN 200 day performance

 

 

[color-box color=”blue”]You generally want to open positions in the strongest stocks and RTN is at the top of its peer group, the only stock that is stronger Northrop Gruman (NOC). The current market pullback will provide the astute investors with a good opportunity to open up positions in key stocks, and this could be one of them.[/color-box]
12 month projected EPS Growth Chart

Raytheon_12_month_EPS

In general, the best rule of thumb is to open positions when the price of the stock is trading above the EPS chart.  RTN Has been trading comfortably above this line for some time and it is projected to maintain this trajectory.  The ideal entry point, though this does not often occur would be to open a position when the price of the stock comes close to testing the EPS line. In this case, it would roughly correlate to price in the $95.00-$100.00 ranges. However, we would not hold only for this price as it might or might not come to pass. The best strategy is to spread your money over a range of entry points.

The Technical outlook
RTN Raytheon NYSE

The stock is consolidating though it has held up remarkably well during this tumultuous period and this suggests that when the markets put in a bottom, this stock will most likely outperform the market.  RTN is likely to test the 110-113 ranges before trending higher. A weekly close below 110.00 should result in a quick test of the 105-108 ranges.   Note that both the MACD’s and the RSI are already trading in the oversold ranges.  This is quite bullish considering that the stock is only trading 8% below its current highs.  The stock also pays out a dividend of 2.6%.

 

[color-box color=”yellow”]Earnings per share and dividend charts provided by dailyfinance.com, and EPS chart provided courtesy of zachs.com[/color-box]

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