5 Defense Stocks to Buy As Geopolitical Tensions Rise

2. Raytheon Technologies Corporation (NYSE:RTX)

Number of Hedge Fund Holders: 50 

Raytheon Technologies Corporation (NYSE:RTX) operates as an aerospace and defense firm. On February 16, Wolfe Research analyst Michael Maugeri maintained an Outperform rating on the stock and raised the price target to $111 from $110, identifying the company as a top pick in the aerospace sector given the “underappreciated aftermarket opportunity and growing free cash flow” of the firm. 

The hedge fund sentiment around Raytheon Technologies Corporation (NYSE:RTX) is also positive. At the end of the fourth quarter of 2021, 50 hedge funds in the database of Insider Monkey held stakes worth $2.3 billion in Raytheon Technologies Corporation (NYSE:RTX), compared to 48 in the preceding quarter worth $2.2 billion.

In its Q4 2020 investor letter, Davis Funds, an asset management firm, highlighted a few stocks and Raytheon Technologies Corporation (NYSE:RTX) was one of them. Here is what the fund said:

“In today’s uncertain economy, we believe we have found such businesses trading at bargain prices in two sectors: industrials and financials. In the industrial space, concerns about the impact of the economic downturn on short-term profitability led to a wave of selling in a select group of leaders with durable competitive advantages, long records of profitability and bright long-term prospects. Companies like Raytheon Technologies is a wonderful example of attractive investments in this sector.”