Here's Why Raytheon Stock Climbed 11.7% in the First Half of 2022
When commercial aerospace giant United Technologies combined with defense specialist Raytheon in April 2020, the rationale for the deal was that the two companies together would be less vulnerable to cyclicality than either was on its own.
The new Raytheon Technologies (NYSE: RTX) demonstrated the value of diversification in the first half of 2022, with its stock climbing 11.7%, according to data provided by S&P Global Market Intelligence, in a period when the S&P 500 was down 20.6%. It was the defense side of the business that carried the day, with commercial aerospace actually underperforming the broader index.
In a first half where little went right for stocks, the defense sector was the beneficiary of a grim catalyst. Russia's invasion of Ukraine has both rejuvenated Western resolve and, along with it, provided a likely boost to weapons sales, with demand for shipments to Ukraine. The legacy Raytheon business was a missile specialist, with an arsenal that includes co-production of the Javelin anti-tank missile that has been a big part of Ukraine's defense.
Source Fool.com
