Why Raytheon Parent RTX Stock Is Up

RTX Corporation RTX shares are trading slightly higher Tuesday after the company announced the U.S. Army awarded the Javelin Joint Venture (JJV) two production contracts totaling $267 million for Lightweight Command Launch Units (LWCLU).

The Details:

RTX said the contracts support U.S. Army and Foreign Military Sales for Estonia, Latvia and Lithuania, and production work under the contracts will take place in Tucson with estimated completion in 2026 and 2028.

Javelin is developed and produced by the JJV between Raytheon in Tucson, Arizona and Lockheed Martin Corp. LMT in Orlando, Florida. The JJV has produced more than 50,000 Javelin missiles and more than 12,000 reusable Command Launch Units to date. 

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According to data from Benzinga Pro, RTX shares are trading above the stock’s 50-day moving average of $119.89 and have gained 48% year-to-date. 

RTX Stock Prediction 2024:

Equity research analysts on and off Wall Street typically use earnings growth and fundamental research as a form of valuation and forecasting. But many in trading turn to technical analysis as a way to form predictive models for share price trajectory.

Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Looking at RTX, an investor could make an assessment about a stock's long term prospects using a moving average and trend line. If they believe a stock will remain above the moving average, which many believe is a bullish signal, they can extrapolate that trend into the future using a trend line. For RTX, the 200-day moving average sits at $103.64, according to Benzinga Pro, which is below the current price of $124.64. For more on charts and trend lines, see a description here.

Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade at a later date if conditions remain stable.

RTX Price Action: According to Benzinga Pro, RTX shares are up 0.45% at $125.20 at the time of publication Tuesday.

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Image: Courtesy of Raytheon