Recently, fears from the Sino-US trade war have spilled over Raytheon (NYSE: RTN). These fears have caused the shares to fall from $230 to $193 per share. This is a 16% pullback on a company that’s riding many secular trends that should otherwise benefit shareholders.
Hence, the catalysts for the selloff are either 1) the recent geopolitical events have taken their toll on the stock price, 2) company was overvalued and peaked, or 3) usual random price fluctuation.
So let’s try and address these issues one by one. But let's assume that if it's just random price fluctuation and nothing else, then it'd clearly be a buy opportunity (because RTN's revenues haven't declined in tandem with the share price).
