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Raytheon Just Keeps On Chugging


Raytheon is up 30% over the past 12 months.

Consistent revenue and earnings growth have pushed the stock higher.

This growth justifies higher valuation.

Raytheon (NYSE:RTN) has been on a tear over the past year as the company's ability to consistently fuel revenue and earnings growth continues to push the stock higher. Now that RTN has returned more than 30%, investors might be wondering whether now is a time to take profits or hold on for the ride. Let's discuss, shall we?

RTN data by YCharts

With the exception of Boeing (NYSE:BA), defense stocks have been riding a strong wave of positive investor sentiment. Lockheed Martin (NYSE:LMT), Northrop Grumman (NYSE:NOC) and RTN have been the main beneficiaries of this upward momentum:

RTN 1 Year Price Returns (Daily) data by YCharts

RTN 1 Year Price Returns (Daily) data by YCharts

Raytheon has been growing both the top and bottom lines despite intense competition in the defense market as military contracts usually go to the lowest bidder. According to the company's FY2016 guidance, which was most recently updated in the Q2...