Raytheon Technologies Corp. (NYSE:RTX) and Lockheed Martin (NYSE:LMT) have continued to gain as defense spending rises. Raytheon is trading at a valuation of $103.37. Yesterday, the stock opened at $100.64, which is the low of the day.
The highest price was $104.45. Previous analysis predicted that Raytheon would likely face resistance at $100, and if it were to break above it, it would then rally to find a new high. The price target is $125.
Lockheed Martin is trading at $469. The valuation is above a previously identified resistance level of $441. According to our analysis, Lockheed Martin is on track to find a new high, with potential resistance at $500. However, the price could appreciate to around $520 before pulling back to consolidate.
Raytheon Technologies offers higher yields for a lower price
Since May 2019, Raytheon has returned 42.39% to shareholders. Lockheed Martin made a return of 33.30% over the same period. RSI analysis shows that Lockheed may slide lower soon. At 70.21, it shows that Lockheed Martin is overbought. Some investors, especially retail investors, are likely to start selling the shares.
This would set up some resistance at $470. However, the liquidation would be short-lived and would have little impact on the valuation. Institutional investors are likely to accumulate on any decline.
For Raytheon, the RSI of 65 indicates that the stock still has some room to accelerate before investors can reassess portfolio strategy. This analysis believes that investors will take advantage of this opportunity to drive the share price higher. Comparatively, therefore, this analysis finds a better opportunity in Raytheon Technologies.
Both Raytheon and Lockheed Martin are on a bull run with the promise of positive returns. It is recommended to invest in both businesses. If one has to choose between the two, Raytheon Technologies is the better buy.