Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, September 15, 2023

Article Excerpt

RTX CORP., $75.80, New York symbol RTX, is still a buy for long-term gains. The company recently changed its name from Raytheon Technologies Corp. (it did not change the trading symbol). Formed from the 2020 merger of Raytheon and United Technologies, it is a leading maker of commercial aircraft equipment, electronic systems for military aircraft, and guided missiles. The stock dropped 4% this week after the company’s Pratt & Whitney unit announced that contaminated metal in some engine parts will force it to remove and inspect between 600 and 700 jet engines over the next three years. RTX will record a charge of $3.0 billion in the third quarter of 2023 to cover these costs. To put that in perspective, it earned $1.33 billion, or $0.90 a share, in the three months ended June 30, 2023. The company also expects the recall will cut its 2025 forecast free cash flow (regular cash flow less capital expenditures) from $9.0 billion to $7.5 billion. However, thanks partly…