Bryan Perry
Raytheon Company (NYSE: RTN) is an international aerospace and defense giant that could be ready to rise again after a recent pullback amid threats of new tariffs between world leaders. Those events interrupted its share-price surge of 46 percent since the election of President Trump on November 8, 2016, which spurred a jump in the price of defense stocks that has become known as the "Trump Effect."
President Trump, who has advocated increased military spending by America and its allies, has caused market uncertainty with his talk of imposing tariffs on imports as he seeks to negotiate what he considers “fair” trade agreements. Raytheon is a defense company based in Waltham, Massachusetts, that seems positioned to withstand the turbulence.
The share price of Raytheon has jumped 46.07 percent since its adjusted closing price of $132.76 on the day President Trump was elected, through the stock’s end-of-day price of $193.92 on June 26. Even though Raytheon’s stock price slid 15 percent between April 23, when it closed at $228.13, and June 26, the company beat analysts' estimates of its first-quarter sales and earnings announced on April 26 due to increased demand, especially from other countries. However, Raytheon only boosted its financial guidance for the rest of 2018 slightly when its management reported earnings, so Stifel Nicolaus defense analysts opined that the stock traded down amid unfulfilled hopes from some investors for an even more bullish outlook.
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Paul Dykewicz, www.pauldykewicz.com, is an accomplished, award-winning journalist who has written for Dow Jones, the Wall Street Journal, Investor’s Business Daily, USA Today, the Journal of Commerce, Seeking Alpha, GuruFocus and other publications and websites. Paul is the editor of StockInvestor.com and DividendInvestor.com, a writer for both websites and a columnist. He further is the editorial director of Eagle Financial Publications in Washington, D.C., where he edits monthly investment newsletters, time-sensitive trading alerts, free e-letters and other investment reports. Paul previously served as business editor of Baltimore’s Daily Record newspaper. Paul also is the author of an inspirational book, “Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a foreword by former national championship-winning football coach Lou Holtz.