Trade Alert – Equity Model Only
This morning we are buying RTX and MSFT on earnings-related dips.
RTX fell over 15% at one point yesterday before recovering slightly. Earnings and guidance were positive, but in a surprise to investors, they set aside $500 million to deal with an issue regarding their Pratt Whitney engines that will require costly inspections. RTX’s Free cash flow estimates for 2025 are unaffected. The market shaved about $20 billion off its valuation for what appears to be a much smaller expense. MSFT is down a few percent on earnings and about 8% from recent highs. It is approaching its 50dma which should provide support. We are increasing weights slightly for both positions in the equity model.
Equity Model
- Increase RTX Technologies (RTX) to 2.5% of the portfolio value.
- Bring Microsoft (MSFT) up to 3% of the total portfolio value.
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Lance Roberts is a Chief Portfolio Strategist/Economist for RIA Advisors. He is also the host of “The Lance Roberts Podcast” and Chief Editor of the “Real Investment Advice” website and author of “Real Investment Daily” blog and “Real Investment Report“. Follow Lance on Facebook, Twitter, Linked-In and YouTube
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