Raytheon Technologies Corporation (NYSE:RTX) saw significant share price movement during recent months on the NYSE, rising to highs of US$70.54 and falling to the lows of US$56.68. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Raytheon Technologies’ current trading price of US$61.44 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Raytheon Technologies’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
Check out our latest analysis for Raytheon Technologies
What is Raytheon Technologies worth?
Good news, investors! Raytheon Technologies is still a bargain right now. My valuation model shows that the intrinsic value for the stock is $99.28, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. Another thing to keep in mind is that Raytheon Technologies’s share price may be quite stable relative to the rest of the market, as indicated by its low beta. This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again.
What kind of growth will Raytheon Technologies generate?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to more than double over the next couple of years, the future seems bright for Raytheon Technologies. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
What this means for you:
Are you a shareholder? Since RTX is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on RTX for a while, now might be the time to enter the stock. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy RTX. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.
With this in mind, we wouldn’t consider investing in a stock unless we had a thorough understanding of the risks. For instance, we’ve identified 5 warning signs for Raytheon Technologies (2 make us uncomfortable) you should be familiar with.
If you are no longer interested in Raytheon Technologies, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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Ex-Sanders staffers promote Biden to Latinos in Iowa, Nevada
WILMINGTON, Del. (AP) — Former staffers from Bernie Sanders’ presidential campaign want to harness strong support for the Vermont senator among Hispanics to bolster Joe Biden in two battleground states that could prove critical in November’s election.
Nuestro PAC is launching a 30-second spot that will begin airing Thursday for two weeks in heavily Hispanic Nevada and in Iowa, another state where the growing Latino population is largely overlooked. Backed by a six-figure ad buy, the spot features Hispanic staffers of Sanders’ campaign saying they worked hard for him during the Democratic primary, “But now, we’re all for Joe Biden, because Biden’s endorsed by Bernie.”
“We’re going to go into states where Bernie just dominated the Latino vote to help lift up Biden,” said the group’s founder, Chuck Rocha, who headed the Sanders campaign’s Hispanic outreach. “In Iowa, going to Latinos will surprise people … but they’re there, and we won them by huge margins. And the opposite side of that equation is going into Nevada to shore him up with young Latinos.”
The Biden campaign has acknowledged that its standing with Latinos could use improvement and tried to build a coalition of 20-plus voting blocs to mitigate that — including seniors, Native Americans and another group that strongly supported Sanders during the primary, progressives.
On Tuesday, Biden’s campaign unveiled its own ads in English and Spanish highlighting the Latino community. They are airing on television and digitally in Arizona, Florida and Nevada. The ads are also appearing in other states where Latino populations do not get a lot of attention but could play decisive roles at the ballot box — Minnesota, North Carolina, Pennsylvania, and Wisconsin.
Another onetime Biden primary rival, former New York Mayor Mike Bloomberg, has announced $100 million in investment in the swing state of Florida on Biden’s behalf, after a recent poll showed Biden garnering less support among Latinos there than Hillary Clinton did at the same point in 2016.
Rocha’s organization is instead betting on Sanders’ appeal in areas where Latinos backed him the past. He easily won Nevada during the primary and effectively mobilized Iowa’s small but growing Latino population to succeed in its caucus.
That may counter the Trump campaign’s efforts to bolster its national outreach to Latinos, especially men. While campaigning Friday in Florida, Trump said, “Biden betrayed Hispanic Americans.” He did not elaborate. The president has also visited Iowa and Nevada in recent weeks, something Biden has not done since the primary.
Sanders is a fierce critic of super PACs. But Nuestro PAC is teaming with the America’s Progressive Promise, run by Jeff Weaver and other former top strategists from Sander’s presidential campaign, to produce the spot.
“I think 2016 showed us, especially with states like Pennsylvania, Michigan and Wisconsin, that a lot of these minority communities — like Latinos and African American communities — can also be the margin of victory,” said Eileen Garcia, who was national surrogate communications coordinator for Sanders’ presidential campaign and is one of the ex-staffers featured in the ad that begins airing Thursday.
The title “Tio,” which translates to “Uncle,” is a play on the nickname some Hispanic supporters bestowed on Sanders during the primary. The ad will air only on digital media. Nuestro PAC says that’s because Latino voters tend not to watch network TV at high rates.
The groups have teamed up for previous ads. One that decried Trump’s handling of the coronavirus pandemic targeted several states, including Michigan and North Carolina.
“Everyone is starting to realize that this untapped community has a lot of potential,” Garcia said, “if you just put in the resources to talk to them.”
Kelly Clarkson Sued by Management Firm for Unpaid Commissions
Kelly Clarkson’s longtime management company filed a lawsuit on Tuesday claiming it’s owed $1.4 million in unpaid commissions.
Starstruck Management Group, run by Narvel Blackstock, filed the claim in Los Angeles Superior Court. Clarkson married Blackstock’s son, Brandon Blackstock, in 2013, and filed for divorce earlier this year. The couple has two children together.
According to the complaint, Clarkson has not paid the full commission this year for her work on “The Voice” and “The Kelly Clarkson Show,” her syndicated talk show.
The company has represented Clarkson for the last 13 years, and was paid a 15% commission on her gross earnings. The suit states that Clarkson has paid the firm $1.9 million this year, but owes another $1.4 million.
The suit also claims that Clarkson will owe at least $5.4 million by the end of the year.
It does not appear that Clarkson and Starstruck have a written management agreement. The suit alleges that the terms of the deal were verbally negotiated by Clarkson’s attorney and business manager in 2007, and that Clarkson confirmed the deal in a phone call.
Since then, the firm has been paid regular commissions in accordance with the terms, according to the complaint.
“Over the course of approximately 13 years, Starstruck developed Clarkson into a mega superstar,” the complaint states. “By way of example only, Starstruck was instrumental in helping Clarkson achieve success in terms of numerous hit albums, multiple Grammy wins and nominations, her role on popular television shows like ‘The Voice’ and her own talk show. Despite Starstruck’s hard work and dedication, Clarkson has decided she is going to stop paying Starstruck for what is contractually owed.”
The suit alleges a breach of oral contract, and seeks declaratory relief and an accounting. Starstruck is represented by Bryan J. Freedman of Freedman & Taitelman LLP.
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2 “Strong Buy” Space Stocks That Are Ready for Takeoff
Space, the final frontier. Throughout history, the expanse that exists beyond Earth has captivated people all over the world, with space exploration continuing to take giant leaps forward since Apollo 11 first landed on the moon.Now, outer space has peaked Wall Street’s interest. Given the high levels of private funding and advances in technology, the pros argue there could be major implications should space become more accessible and less expensive to reach. To this end, new markets such as satellite broadband, high-speed product delivery, reusable rockets and human space travel are emerging.Speaking to the potential opportunity, according to a recent KPMG report, by 2030, the global space industry could reach $600 billion, with it currently worth $350 billion. Bearing this in mind, we used TipRanks’ database to zero in on two space stocks reaching for the stars, so says the Street. Boasting the analyst community’s full support, both tickers have received a “Strong Buy” consensus rating. Virgin Galactic Holdings (SPCE)By offering high-speed point-to-point travel, Virgin Galactic wants to commercialize space travel and revolutionize commercial flight. Given the significant backlog of demand for commercial spaceflight, several members of the Street have high hopes for this space stock.Representing Cowen, analyst Oliver Chen sees SPCE as “uniquely positioned to benefit from the growing consumer interest toward luxury experiences, especially among high-net-worth individuals.” He added, “We believe a substantial growth opportunity lies ahead with the commercial spaceflight business, which already has ~600 reservations, and the development of high-speed point-to-point travel.”Looking at the market opportunity, Chen estimates that this part of the business could push SPCE’s top-line to $1 billion-plus by 2030, growing at a 60%-plus CAGR (2021-2030), with an EBITDA margin of 46%. According to the analyst, there’s a total addressable market (TAM) for commercial spaceflight (suborbital) of roughly 2.4 million individuals with a net worth of $5 million-plus globally.On top of this, SPCE could use its technology to develop additional revenue streams such as high-speed P2P commercial air travel. The development of hypersonic aircrafts would make 85% of the global network pairs accessible in a one-day trip. In addition, the analyst thinks the high-speed P2P opportunity could yield a TAM of $985 billion by 2050, and SPCE’s market share could clock in at 20%. “P2P is in very early innings but we believe the company has the resources, capital, and experience to pursue this business line,” Chen noted.Given that the company’s leadership team brings expertise from NASA and Disney to the table, Chen argues SPCE is capable of capitalizing on the opportunity, with solid execution potentially solidifying its status as an experiential luxury brand.The positioning of its commercial space flight offering as a luxury airline experience, which is what consumers are more used to, is likely to give SPCE the first-mover advantage over others like Blue Origin. “Given the high fixed cost of operating a space tourism operation, first-mover advantage looks critical to success; and VG appears better positioned than BO to get it,” Chen mentioned.What else could give SPCE the first-mover advantage? Chen points to SPCE’s 10-plus years of technology developed with $1 billion of investment made to-date and the vertically integrated aerospace development capabilities. What’s more, SPCE has “created competitive moats in a high-barrier-to-entry industry and benefits from strong consumer demand, which should support a premium pricing structure.”Based on all of the above, Chen puts an Outperform (i.e. Buy) rating and $22 price target on the stock. (To watch Chen’s track record, click here)Are other analysts in agreement? They are. Only Buy ratings, 7 to be exact, have been issued in the last three months. Therefore, the message is clear: SPCE is a Strong Buy. With a $25.43 average price target, shares could rise 22% in the next year. (See Virgin Galactic stock analysis on TipRanks)Aerojet Rocketdyne Holdings (AJRD)Serving customers that include the U.S. Department of Defense (DoD), NASA and other agencies and companies, Aerojet Rocketdyne develops and manufactures advanced propulsion and energetics systems. Given its recent contract awards, multiple analysts believe this company’s long-term growth prospects are strong.5-star analyst Ken Herbert, of Canaccord Genuity, recently met with AJRD’s new CFO, coming away from the discussion with his bullish thesis very much intact. The company expects the space business, which makes up 40% of sales, to be flat to up slightly, due to the recent SLS RS-25 engine order, with the core defense business (60% of sales) set to see steady growth.“While near-term margin upside is limited, we believe the revenue visibility, strong balance sheet and incremental opportunities in both space and defense contribute to a scarcity value for AJRD not reflected in the stock,” Herbert commented.That said, new programs are an essential piece of the puzzle here. Earlier in September, AJRD announced that it will build two elements of the new ground based strategic deterrent (GBSD) nuclear missiles for Northrop Grumman, which received a $13.3 billion, 8.5-year EMD contract to initiate early production of the “Minuteman IV” platform. AJRD is responsible for manufacturing a large solid rocket motor for the missile’s upper stage and the post-boost propulsion system needed to guide the nuclear warheads to their targets through apogee (the highest point of their parabolic flight arc). Weighing in on the deal, Herbert commented, “The program is expected to be substantial to both Aerojet and Northrop, with 400 active and 242 spare ICBMs expected to occupy the existing launch sites in the American West. It has been estimated that the GBSD program will be worth $63 billion during its first 20 years of life, which is likely to be extended given the longevity of the current Minuteman III deterrent.”Adding to the good news, AJRD’s backlog has increased to a record high of $6.8 billion as of Q2 2020, a 48% gain from the prior-year quarter. According to Herbert, a key driver of this growth has been the $1.8 billion NASA contract to construct 18 new RS-25 engines to support at least five additional Artemis lunar missions beyond the three currently planned. “As such, visibility into Aerojet’s business with NASA continues to look promising through 2030. Aerojet has also continued to see backlog growth on THAAD, hypersonics, Standard Missile and GMLRS,” the analyst stated. If that wasn’t enough, Herbert believes missile defense and classified hypersonics programs are likely to see solid backlog growth in the near-term.On top of this, in August, the U.S. Air Force awarded two contracts for the National Security Space Launch (NSSL) program to ULA (a Boeing and Lockheed joint venture) and SpaceX. The implication? “Aerojet Rocketdyne is seen as a winner of the contact outcome, which ensured that the company will continue to provide content on a majority of U.S. military and intelligence launches. AJRD will see its upper stage engine content double on the new ULA Vulcan rocket under this contract, which utilizes a new Centaur upper stage (the Centaur V) powered by two RL10 engines, as opposed to one RL10 on the legacy Atlas V rocket,” Herbert explained.Everything that AJRD has going for it convinced Herbert to reiterate his Buy rating. Along with the call, he maintained a $54 price target, suggesting 34% upside potential. (To watch Herbert’s track record, click here)All in all, other analysts are on the same page. AJRD’s Strong Buy consensus rating breaks down into 3 Buys and no Holds or Sells. Meanwhile, the $56 average price target brings the upside potential to 39%. (See AJRD stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
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