Raytheon merger with united technologies. Why Raytheon (and United Technologies) Is a Good Value Stock for 2020

Raytheon to merge with United Technologies, creating a military

raytheon merger with united technologies

Advisors Citigroup Global Markets Inc. The stock is up 44% year to date, and trades for a premium multiple, 34 times estimated 2020 earnings. It has invested heavily in recent years ahead of the recent uptick in Pentagon spending, and has the biggest export business among the five largest U. Conference Call A conference call to discuss the merger will be held tomorrow, June 10, 2019 at 8:00 a. Write to Cara Lombardo at cara.

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United Technologies to Merge With Raytheon in All

raytheon merger with united technologies

Raytheon produces missiles such as the Tomahawk together with Patriot missile-defense systems, radars and other electronic-warfare systems. All forward-looking statements involve risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied in the forward-looking statements. The company will continue to pursue contracts in military cybersecurity, Kennedy said, building on about 16 acquisitions the company has carried out in recent decades. Raytheon is currently based in Waltham, Mass. United Technologies sees no change in its 2019-projections because of this merger deal.

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Raytheon to merge with United Technologies, creating a military

raytheon merger with united technologies

Money Morning Chief Investment Strategist Keith Fitz-Gerald has uncovered another defense stock with the potential to break out. Healthy free cash flow generation and solid balance sheet will be beneficial. That works out to an appealing 7. In other words, weapons aren't stand-alone products. The new defense and aerospace company would be second only to Boeing in the U. The merger is subject to approval by government regulators, as well as by the two companies' shareholders. After Mercury, it gets harder to find small-capitalization defense electronics companies.

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Raytheon and United Technologies Aerospace Businesses to Combine in Merger of Equals

raytheon merger with united technologies

Investors can buy United Technologies for Raytheon Technologies—the combined aerospace and defense business—as well as the Carrier and Otis spinoffs. The conference call will also be audiocast online at and. In the past 60 days, bottom-line estimates for these companies have improved for the current year. With rising geopolitical tensions, the combined entity will be well positioned to expand on the defense sector market share globally. Employees will have expanded opportunities for career development and advancement in high-growth areas, as well as ongoing engagement in local communities.

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How to Play the Merger of United Technologies and Raytheon

raytheon merger with united technologies

United Technologies holders will get 57% of the new company, and Raytheon holders, 43%. Participants in the Solicitation United Technologies and Raytheon Company and their respective directors and executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies in respect of the proposed merger. The company will retain its headquarters in the Boston area. Even in terms of regional diversification, Raytheon Technologies has 55% market share in the United States and 45% market share in international markets. Any forward-looking statement speaks only as of the date on which it is made, and United Technologies and Raytheon Company assume no obligation to update or revise such statement, whether as a result of new information, future events or otherwise, except as required by applicable law.

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The Valuation Conundrum in the United Tech

raytheon merger with united technologies

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Raytheon Technologies is aiming to create cost-effective solutions for the defense sector, which is critical as defense budget escalate globally. Importantly, the combined entity will be well diversified with 54% revenue from the defense sector and 46% from the commercial airspace sector. The deal brings together two companies that have been integral to the U. For the same period, organic sales growth for United Technologies was 8. Before thinking this is not an issue for index watchers, think of all the former Dow stocks that had previously or after the fact witnessed many key changes. Google Alphabet shared its plan to catch up to Microsoft's cloud division during its earnings call.

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Raytheon and United Technologies to Merge

raytheon merger with united technologies

However, the companies have yet to brief the Pentagon or suppliers. Both stocks trade at about 16 times projected 2019 earnings. In fact, Boeing's revenue is likely to exceed that of Raytheon Technologies by about 28%. Since then, Ackman has sold his United Technologies stake, while Loeb has and has said little more. Raytheon Technologies will be headquartered in the greater Boston metro area, and will retain a corporate presence in existing locations. The dial-in number for the conference call will be 877 280-7280. That has investors wondering if now's the right time to pick up Raytheon stock.

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