Recently we took a detailed look at the Top 10 Trending Stocks and Rtx Corporation (NYSE:RTX) was one of the stocks that were highlighted in that article.
The volatile tariff policies of the new US administration and a slowdown in AI-related enthusiasm took a toll on the market over the past few weeks. However, some analysts believe a rebound is due.
Fundstrat’s Tom Lee said in a latest program on CNBC that he believes the US stock market will begin to recover starting April 2. Here is how Lee explained the reasons behind his positive outlook:
“When markets fall this quickly from a 52-week high, just remember less than a month ago we were at all-time highs. That is a market pricing in a crisis. I’d say almost 50% pricing in a recession, and we’re assuming there’s no Fed put now. The Fed is in a position to cut rates that really should mitigate the downside. I do think two other things that investors have to keep in mind, because many people just want to get out until April 2nd, is number one, I do think there’s a very high probability that a tariff solution happens before the next three weeks happens. It’s simple to see because China, Europe, Canada, Mexico since April 18th—all of those countries have outperformed the US. I don’t think that markets are that blind to say if Canada and Mexico are about to have a recession, they should outperform the US. The second thing people should keep in mind is that when you have a global crisis brewing—and we highlighted like the 1962 Cuban Missile Crisis—that was a 12-day crisis, but the markets bottomed seven days into the crisis, five days before that crisis ended, the market had already recovered two-thirds of the losses.”
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For this article, we picked 10 stocks notable Wall Street analysts were discussing recently. With each stock we have mentioned its latest hedge fund sentiment. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A healthcare specialist in the laboratory testing an Oncology-related product.
8. Rtx Corporation (NYSE:RTX)
Number of Hedge Funds Investors: 72
Josh Brown, CEO of Ritholtz Wealth Management, said in a latest program on CNBC that he’s bullish on Rtx Corporation (NYSE:RTX).
“RTX—this is like the merger between United Technologies and Raytheon. Now they can both supply airplane parts to commercial. RTX has seen double-digit revenue growth in three of the last five quarters. If you think that Europe and America have to continue to spend, and Trump’s going to do this thing with the ships, then this is where money is going to be made. It’s an unfortunate part of life, but defense spending is going to be more important, not less important, as time goes on. The stock’s at a 19 forward PE, expecting 7% earnings per share growth and 12% next year. They are accumulating the stock. It’s got an RSI of 50, not yet overbought, 3% above the 50-day, and 8% above the 200-day. Yes, it’s industrial, but it looks great.”
Longleaf Partners Fund stated the following regarding RTX Corporation (NYSE:RTX) in its Q4 2024 investor letter:
“RTX Corporation (NYSE:RTX) – Aerospace and defense company RTX was a top contributor for the year. Our appraisal value has grown nicely since we first purchased the company just over a year ago. While the issues for Pratt & Whitney’s (P&W) Geared Turbofan engine are still not yet fully fixed, they have gotten better and given us another reminder that the point of maximum pessimism is only obvious in retrospect. We continue to have a conservative valuation on P&W so view this as a source of future value upside. The Raytheon segment has also performed better as the year has gone on, with recent signs of margin improvement. Strong industry tailwinds, prudent capital allocation and a solid balance sheet provide a foundation for sustained growth and eventual full value recognition.”
RTX ranks 8th among our list of the top 10 trending stocks. While we acknowledge the potential of RTX, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RTX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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