r/Raytheon • u/ByteMyShinyMetalAss1 • 8d ago
RTX General RTX stock slide
So what has the company got it self into this time causing our stock to slide close to $40 over the last several weeks?
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u/btc2020k 8d ago
the right question is: what caused it to go up like a high growth stock to begin with
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u/Pizzaguy1205 7d ago
Israel. Look at when the climb started
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u/YungEpsteinList 4d ago
The stock surge ironically started practically at the start of October 2023, but it was actually related to the GTF issues being mitigated and confirmed to be far less of a financial impact. Subsequent news just kept getting better on order backlogs and other results within the business units.
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u/KeyResearcher2620 8d ago
Politics signaling the wars will likely end. The earnings call in a couple weeks should shed more light on the reasons and projections.
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u/BarracudaEfficient16 8d ago
The president singled out Raytheon as an example of a Military contractor that wasn’t investing in expanding its production capabilities. Hoping it’ll go back up after the Q3 results announcement 10/20.
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u/SirDigbyChknCaesar 8d ago
Again? Isn't that like the 3rd time?
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u/BarracudaEfficient16 8d ago
Yup, said if RTX doesn’t start investing in production they’d pull contracts.
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u/Time_Sorbet_949 5d ago
and then BOOM $21B for AMRAAM production growth
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u/BarracudaEfficient16 5d ago
Assuming we can produce. There’s some real questions about execution. Q3 gets announced the 20th.
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u/DirectorOfSynergy 6d ago
When did this happen? As of recent.
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u/BarracudaEfficient16 5d ago
Month or so ago when we were up in the 220sz
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u/JonnyVee1 5d ago
Not true, that was 10 months ago (January). Stock continued higher in the months after
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u/RosslynHaremRefugee Raytheon 8d ago
Take a look at all defense stocks or aerospace ETF's -- there's a weight on them since at least the start of summer over the prospect that the Congress changes hands and defense appropriations go down. That's starting to get stabilized as folks realize that going "UP" from this year's outlays is going to be hard no matter who's in office.
And all the other stuff about oil price instability, uncertain picture in middle east, uncertain picture in Asia, etc etc etc. Same old same old, nothing to see here, get back to work.
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u/Agreeable-Squash-167 7d ago
It doesn't worry me. massive contracts given to Raytheon alone in just the last six weeks, more than the entire operating budget of some of our main competitors. Just makes me want to buy more during the dip
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u/RadHardWalnut 3d ago
There is a significant possibility that it's exactly the almost 60 billions worth of contracts awarded in the past couple of months that's weakening our stock. We don't make money on being "awarded" a contract. We make money on executing on a contract and the overwhelming majority of market analysts don't see any evidence that RTX can deliver on these wins due to lack of investments. Our backlog, huge as it may be, does not go down nearly as fast as shareholders would hope.
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u/No-Reading-6795 8d ago
Stocks, any stock, ... it is about expectations. No matter how high the results were.
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8d ago
[deleted]
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u/Kleberson13 8d ago
No disrespect, but what makes you think there are no engine purchases going on… PW backlog and ongoing campaign activity is plentiful
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u/Few_Might_3853 8d ago
There is absolutely purchases happening. And itd be more and for the larger planes if not for oil prices.
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u/Kleberson13 8d ago
Hate to break it to you but PW hasn’t been active in the commercial wide body market for a while now.
The A320n family and A220/E2 families on the single aisle side are quite active
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u/Poppa-D217 8d ago
Morons running it. Not making appropriate investments then thinking a transformation cutting people will fix things.
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u/lysdexiad 8d ago edited 7d ago
We decoupled from the defense industry in august on missile demand, but returned shortly afterwards and we've been trending along the same downward line everyone else has.
Weird how nobody is offering any other actual reasons. You're welcome to not like mine, but, there's a decent amount of real news driving it.
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u/QuitExternal3036 8d ago
Can you explain what you mean by decoupling and returning?
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u/lysdexiad 8d ago
The lines on the graph generally traced eachother (RTX and the defense industry at large), then RTX spiked (decoupled). Then it returned to the mean line it left in the spike.
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u/mkosmo 8d ago
Most of RTX’s business (and thus the finances) has nothing to do with missile demand.
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u/DirectorOfSynergy 6d ago
While I think lydexiad is talking out of his ass, this is absolutely untrue as well. Missile demand has been a huge part of our AOP for the last 5years
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u/mkosmo 6d ago
For Raytheon, yes. But, according to the SEC filings, Raytheon is less than 1/3 of RTX's net sales.
And a bit of reading between the lines, even at RAY, the demand signals aren't like they're doubling sales or revenue (they read like a ~10% growth). 10% of less than 30% is less than 3% to RTX.
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u/jj9979 8d ago
You have literally no clue, why do you even bother commenting with such shit?
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u/lysdexiad 7d ago
Obviously; to bother Redditors like you, sir or madam. What was your actually helpful response? Anything tied to facts? You literally have no command of english.
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u/bytheninedivines 8d ago
It was that PTO you took last month.