Back to top

Analyst Blog

Raytheon Company (RTN - Analyst Report) wins a three-year Defense Threat Reduction Agency or DTRA border security agreement. The contract is valued at $35.9 million.

Per the agreement, Raytheon is responsible for designing, developing and implementing an integrated surveillance system along sections of the Jordanian border. The company will also provide training, maintenance and repair, as well as equipment.

Raytheon has worked with the DTRA on cooperative threat reduction operation under a number of contracts. The Jordan venture is in fact a part of the CTR Integrating Contract (CTRIC II), from Apr 2011, in this field.

Based in Waltham, Mass., Raytheon Company is a technology and innovation leader specializing in defense, homeland security and other government markets throughout the world. Going forward, revenue and earnings growth would continue to be driven by its strong presence in the areas of Intelligence, Surveillance and Reconnaissance (ISR); air & missile defense systems; border security; air traffic management; training and homeland security; and cyber security.

Raytheon remains focused on strong program execution, prudent capital management and strategic investments. In spite of the declining trend in U.S. defense spending, Raytheon is one of the best-positioned companies among the large-cap defense players due to its non-platform-centric focus. The company enjoys impressive order bookings and order backlog, an improving balance sheet, growing cash flow and operational enhancements.

The company is actively involved in a number of classified U.S. government programs, principally through its IIS and SAS business segments.

However, we remain apprehensive over the future growth in the U.S. defense budget, the fate of high-cost programs, risks related to key project executions and order cancellations.

The company presently retains a Zacks Rank #3 (Hold). Other stocks that look promising and are worth accumulating now include Zacks Ranked #2 (Buy) FLIR Systems, Inc. (FLIR - Analyst Report), Honeywell International Inc. (HON - Analyst Report) and Macquarie Infrastructure Company LLC (MIC - Snapshot Report).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
GTT COMMUNI… GTT 11.65 +4.11%
ALLERGAN IN… AGN 161.82 +3.99%
CLAYTON WIL… CWEI 117.06 +3.73%
GREENBRIER… GBX 69.63 +2.37%
RF MICRO DE… RFMD 12.02 +2.04%