Aerospace and defense play Raytheon Technologies is forming a cup base and appears to be nearing a fresh buy point. On Wednesday, Raytheon stock's Relative Strength (RS) Rating climbed to a lofty 91, rising from 88 the day before.
The new 91 RS Rating places Raytheon stock in the top 9% of all stocks in IBD's database in terms of stock price performance. Raytheon is cruising well above the minimum CAN SLIM investors look for. Decades of market research reveals that the stocks that go on to make the biggest gains typically have an RS Rating of at least 80 in the early stages of their moves.
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Looking at its other key ratings, it has a 70 EPS Rating, and an 84 Composite Rating.
The Composite Rating combines five separate proprietary IBD ratings, based on key fundamental and technical criteria, into one easy-to-use score. The best growth stocks have a Composite Rating of 90 or better.
Raytheon Stock's Other Ratings Mixed
One notable area that could use improvement is its Accumulation/Distribution Rating. Its D+ A/D Rating means institutional investors such as ETFs are selling more than buying its shares. However, the number of funds that own its stock rose from 1,924 last December to 1,993 as of March. On the positive side, its relative strength line, which compares a stock against the S&P 500, is at the highest point in more than two years, a bullish indicator.
Waltham, Mass.-based Raytheon provides aerospace components and systems including missiles and spacecraft systems to military, commercial and government customers. Its engines power the widely-used F/A-18 fighter jet. Further, its divisions include aircraft engine and power systems maker Pratt & Whitney, outer space equipment maker Collins Aerospace, and Raytheon Missiles & Defense among others.
Raytheon stock is building a cup without handle with a 106.12 buy point. It was trading at 99.41 Wednesday at midday, down about 1%. See if the stock can break out in volume at least 40% above average.
Raytheon Technologies reported 28% earnings growth in its most recent report, to $1.15 per share. Its EPS grew 164%, 125% and 46% the prior three stanzas. Sales last quarter grew 3% to $15.7 billion.
Peers In Aerospace/Defense Group
Raytheon Technologies earns the No. 17 rank among its peers in the Aerospace/Defense industry group. Hexcel, AAR and Espey Manufacturing & Electronics are among the top 5 highly rated stocks within the group.
As you try to find the best stocks to buy and watch, keep a close on eye on relative price strength. This exclusive rating from Investor's Business Daily tracks market leadership with a 1 (worst) to 99 (best) score. The score shows how a stock's price movement over the last 52 weeks compares to all the other stocks in our database.
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