Will defense spending be good under the Trump administration? In a few tweets, the POTUS has made his thoughts known on areas where he thinks the government is being overcharged. This immediately begs the question, will the margins of different companies that do business with government have their margins squeezed?
That question will probably vary by company. I would also guess it depends on how much business the company does with government. The more business a company does with the government, the higher the risk of having their billings scrutinized by the new POTUS.
This article will take a look at some chart for Raytheon (RTN), a US defense and industrial company that does work with the US government.
Here is what Think or Swim has to say about what Raytheon does to generate its revenue:
"The Company develops technologically integrated products, services and solutions in various markets, such as sensing; effects; command, control, communications, computers, cyber and intelligence (C5I); mission support, and cybersecurity. It operates in five segments:
Integrated Defense Systems (IDS)
Intelligence, Information and Services (IIS)
Missile Systems (MS)
Space and Airborne Systems (SAS)
Its IDS's product lines include Mission Systems and Sensors (MSS), and Integrated Air and Missile Defense (IAMD). Its IIS's product lines include Cybersecurity and Special Missions (CSM), and Global Training Solutions (GTS). Its MS's product lines include Air Warfare Systems (AWS), and Air and Missile Defense Systems (AMDS). Its SAS's product lines include Intelligence, Surveillance and Reconnaissance Systems (ISRS), and Secure Sensor Solutions (SSS)."
With that being said, let's review some charts now for Raytheon.
Raytheon (RTN) - 20 Year Chart
This fist chart is a 20 year chart. As Trendy Stock Chart members know, I always like to visualize where the share price has been for a particular stock. I placed 5 different Fibonacci Extension Tools on the chart that cover different time spans.
The first thing I noticed on the chart was that Raytheon (RTN) developed a Dark Cloud Cover candlestick pattern in December 2016.
This bearish reversal candlestick pattern developed on….
If you want to continue reading this article for Raytheon, you must first login. I talk about areas to watch for a pullback in Raytheon's share price, as well as the upside potential I see from the current share price.
This information can be used to calculate a risk to reward ratio and determine if it is a favorable investment or not.
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