Better Buy: Raytheon vs. United Technologies
United Technologies and Raytheon Company are set to merge in the first half of 2020, and as always in these situations, there's a temptation to lazily assume their share prices will track each other closely. Taking this approach might be a mistake because, based on the terms of the deal and recent events, it looks like buying Raytheon stock is the better option if you want exposure to the future Raytheon Technologies. Here's why.
There's no point considering buying either stock if you don't think the deal will be value-enhancing. However, the good news is there's plenty of evidence to suggest the deal makes sense.
Raython's missile defense systems will be added to United Technologies' arsenal. Image source: Raytheon Company website.
Source Fool.com
