- LIVE QUOTES
- LEARN
- HELP
Wall Street JournalEN
RTX's Missile Sales Soar With Key Wins in U.S. Defense Contracts
Defense contractor, RTX Corporation RTX is a prominent forerunner in the missile systems space, with a robust portfolio including the TOW missile, Guidance Enhanced Missile, Advanced Medium Range Air-to-Air Missile, Tomahawk, SM- 2 and a few more. Through its Raytheon business segment, RTX plays a key role in global missile defense, contributing technologies that support advanced threat detection, interception and precision strike capabilities for the U.S. and allied nations. The company is currently advancing next-generation programs like the Hypersonic Attack Cruise Missile (HACM).
Thanks to RTX’s experience of delivering cutting-edge missiles to the defense market for more than 50 years, now, it enjoys a solid inflow of contracts for its combat-proven missile systems. This, in turn, bolsters the revenue growth of its Raytheon business segment. The Raytheon unit reported an organic sales growth of 2% year over year in Q1 2025 and 10% in Q4 2024.
RTX’s Raytheon unit has recently secured several major defense contracts, which should continue to boost its performance in the days ahead. In June, the company won a $1.10 billion contract modification for the production and delivery of AIM-9X Lot 25 missiles. In May, RTX secured a $1 billion contract to supply up to 55 Standard Missile-3 (SM-3) missiles and a $2.13 billion modification contract for ongoing support and sustainment of SM-3 variants.
Defense Contractors Riding on Solid Contract Flows
As nations worldwide race to modernize their defense systems, prominent defense contractors like Lockheed Martin LMT and Northrop Grumman NOC are securing more and more contracts for their combat-proven weapons, thereby ensuring a steady revenue stream for themselves. In May 2025, Lockheed won a $214.4 million contract to upgrade Multiple Launch Rocket Systems to the M270A2 configuration. Moreover, in March, the company secured a $4.94 billion contract for the production of Precision Strike Missiles.
On the other hand, Northrop clinched a $481.3 million contract in January for providing updates and improvements to the Integrated Air and Missile Defense Battle Command System's software.
RTX’s Price Performance, Valuation and Estimates
Shares of RTX have gained 27.1% in the past year compared with the industry’s 13.9% growth.
Image Source: Zacks Investment Research
The company shares are trading at a discount on a relative basis, with its forward 12-month Price/Earnings being 21.86X compared with its industry’s average of 26.51X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for RTX’s near-term earnings has moved south over the past 60 days.
Image Source: Zacks Investment Research
RTX stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Lockheed Martin Corporation (LMT): Free Stock Analysis Report
Northrop Grumman Corporation (NOC): Free Stock Analysis Report
RTX Corporation (RTX): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).