Look for its free cash flow to double

Article Excerpt

RAYTHEON TECHNOLOGIES CORP. $87 is a buy. The company (New York symbol RTX; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.5 billion; Market cap: $130.5 billion; Price-to-sales ratio: 2.1; Dividend yield: 2.3%; TSINetwork Rating: Above Average; www.rtx.com) took its current form on April 3, 2020, with the merger of United Technologies Corp. (old symbol UTX) and Raytheon Co. (old symbol RTN). It’s now a leading maker of commercial aircraft equipment, electronic systems for military aircraft and radar systems, and guided missiles. The company continues to find cost savings in the wake of the merger. Demand from commercial aircraft makers is also rising as air travel volumes benefit from the easing of pandemic restrictions. As a result, Raytheon expects its free cash flow (regular cash flow less capital expenditures) will total $5 billion in 2021. That’s up from its earlier forecast of between $4.5 billion and $5.0 billion. What’s more, it expects free cash flow could reach $10 billion in 2025. Raytheon Technologies is…