5 Most Undervalued Defense Stocks To Buy According To Hedge Funds

2. Raytheon Technologies Corporation (NYSE:RTX)

Number of Hedge Fund Holders: 51

Aerospace and defense company Raytheon Technologies Corporation (NYSE:RTX) ranks 2nd in our list of the most undervalued defense stocks to buy according to hedge funds.  In February, Bofa included Raytheon Technologies Corporation (NYSE:RTX) in its top picks for 2023 in the industrials sector. BofA has a $120 price target on Raytheon Technologies Corporation (NYSE:RTX) which presents a decent upside potential from the current levels.

At the end of the fourth quarter of 2022, 51 hedge funds out of the 943 funds tracked by Insider Monkey had stakes in Raytheon Technologies Corporation (NYSE:RTX). The net worth of these stakes was about $1.8 billion. The biggest hedge fund stakeholder of Raytheon Technologies Corporation (NYSE:RTX) during this period was Dmitry Balyasny’s Balyasny Asset Management which had a stake worth about $230 million.

Carillon Tower made the following comment about Raytheon Technologies Corporation (NYSE:RTX) in its Q3 2022 investor letter:

“Raytheon Technologies Corporation (NYSE:RTX) announced strong results led by strength in its commercial segment, but weakness in its defense business led to investor consternation. Management guided to a recovery in this segment, citing both transitory supply chain issues and continued strong demand.”