Last Thursday defense contractor Raytheon (NYSE: RTN) reported its earnings for Q2 2018. The report surprised investors thanks to better than expected profits and revenue numbers. RTN was able to beat analysts' earnings expectations by $0.43 and exceed revenue expectations by $120.00 million. suffice to say it was overall an excellent quarter for Raytheon. Yet still the shares experienced a sell off. This was a baffling developmint for current investors and a chance at a discount for those on the prowl.
The Earnings Call Says It All
In their earnings call, they noted a few factors that contributed to the company's stellar results. it was a call filled with talk aboou higher than expected demand for classified research and development projects of new systems for government clients. Classified bookings are an integral part for their long-term growth.There has also been growing global demand for Raytheon's defensive products. with the political climate as it stands today, nations arounf the world still value good deterrence and defensive capabilities. This has allowed Raytheon's THAAD and Patriot missile systems experience heightened demand in Q2 2018.
If you are thinking about investing make sure to consider that raytheon recently deployed a new Naval Strike Missile (NSM) that is already tested and in use. The NSM is set to replace the Harpoon missile, which means this is another multibillion-dollar selling opportunity that will last for years to come. Its deals like this that make defense stocks so attractive, you can buy most defense stocks knowing that the US governments love affair will only drive shares up higher over time.
Buy Value Stocks When They Are On Sale
When stocks prices seem to plummet irrationally, its a good time to pay closer attention. If you can discern that the risk is worth it then buying a stock like Raytheon well help ensure the overall growth of your portfolio. With so many great stocks at irrational lows this week, It is almost certain that there is a buying frenzy coming. There is not current reason that many stocks like RTN and SQ are taking hits other than profit taking and panic selling. Once the bears have exhaisted this cycle will turn positive, so check your technicals and get you some good stocks while they are pratically on sale. It wont last long!!
Posted from my blog with SteemPress : https://habarinetwork.com/2018/07/30/become-a-tech-genius-for-free/