Spinoffs helped spur these two stocks: Raytheon Technologies and L Brands

Article Excerpt

These two stocks are up sharply in the past year, thanks largely to the completion (or announcement) of spinoffs. However, we feel Raytheon is in a stronger position to keep rising as the economy recovers from the pandemic. RAYTHEON TECHNOLOGIES CORP. $73 is a buy. The company (New York symbol RTX; Manufacturing & Industry sector; Shares outstanding: 1.5 billion; Market cap: $109.5 billion; Dividend yield: 2.6%; Takeover Target Rating: Medium; 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). Under the terms of the deal, Raytheon shareholders received 2.3348 shares in the combined company for each share they held. Those shareholders now own 43% of the new company; United Technologies investors own the remaining 57%. The combined firm is a leading maker of commercial aircraft equipment, electronic systems for military aircraft and radar systems, and guided missiles. Just before the merger, United Technologies completed the planned spinoffs of Otis (New York symbol…