Is Raytheon's Stock Still Worth Owning?

Raytheon (NYSE: RTN  ) is a selection for the real-money Inflation-Protected Income Growth portfolio. Like any investment, it needs to be reviewed from time to time to see if it's still worth owning. In the brief video below, portfolio manager Chuck Saletta reviews its valuation, balance sheet, and dividends, and decides whether to hold on to the stock or let it go.

To follow the iPIG portfolio as buy and sell decisions are made, watch Chuck's article feed by clicking here. To join The Motley Fool's free discussion board dedicated to the iPIG portfolio, simply click here.

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  • Report this Comment On July 08, 2013, at 5:01 PM, grahamsway wrote:

    Great presentation. I agree with pretty much everything noted but as RTN gets pretty close to fair value and has little current environment growth going for it, it should be noted that the risks of a meaningful drop rise substantially.

    The stock will likely have its current enthusiastic momentum turn on any disappointment, either company specific or general market.

    On the plus side, you never know if the US is going to get involved in some military skirmish somewhere.

    And even if the company disappoints, Raytheon has enough going for it to eventually get back to near fair value again. But that would entail holding it even as it may drop back into the $50's.

    In general, when skimpy growth co's near FV get inordinately strong bids, a little skepticism might be prudent.

  • Report this Comment On July 08, 2013, at 8:56 PM, TMFBigFrog wrote:

    Hi grahamsway --

    Thanks for your comments on this article/video. Completely agree that the risks increase as the company approaches fair value. That's one reason why the portfolio waited until fears from the sequestration were priced into the company's stock before buying.

    Best regards,

    -Chuck

    Inside Value Home Fool

    Disclosure: I own shares of Raytheon

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