RTX's Raytheon Unit Secures a Contract to Aid RAM GMLS Program

RTX Corporation’s (RTX) unit, Raytheon, recently secured a $74 million modification contract to provide spares to support the Rolling Airframe Missile (“RAM”) Mod 5 Guided Missile Launching System (GMLS). The award has been provided by the Naval Sea Systems Command, Washington, D.C.The majority of the work related to this contract will be performed in Louisville, KY, and Ottobrunn, Germany. This contract is projected to be completed by September 2028.What’s Favoring RTX Stock?Rising military conflicts, terrorism and border disputes have led nations worldwide to increase their focus on national security, particularly on missile defense systems in recent times, backed by the rapid development of advanced missile technologies over the last decade. This is likely to have prompted the Mordor Intelligence firm to forecast a compound annual growth rate of 5% for the global missiles and missile defense system market during the 2025-2030 period.Such massive growth projections offer a strategic advantage to RTX, which has a handful of combat-proven missiles in its product portfolio, like the TOW missile, Guidance Enhanced Missile, Advanced Medium Range Air-to-Air Missile, Tomahawk and a few more, in addition to the RAM GMLS.In particular, RAM GMLS is one of the most modern ship self-defense systems. It is currently deployed on more than 165 ships in 11 countries, ranging from 500-ton fast attack craft to 95,000-ton aircraft carriers, and being installed on several new U.S. Navy ship classes. This reflects the solid demand that this missile enjoys from both domestic and international markets, which is further corroborated by the latest contract win.Prospects for Other Defense StocksOther defense contractors that are likely to enjoy the perks of the expanding missiles and missile system market have been discussed below:Northrop Grumman (NOC): Northrop Grumman provides high-speed, long-range strike weapons like the AARGM-ER, which is a supersonic, air-launched tactical missile system. It also builds advanced missile defense technology, ranging from command systems to directed energy weapons, advanced munitions and powerful sensors.The company’s long-term (three to five years) earnings growth rate is 3%. The Zacks Consensus Estimate for NOC’s 2025 sales indicates year-over-year growth of 2.7%.The Boeing Company (BA): It manufactures various missile defense systems, including the Ground-based Midcourse Defense, Aegis Ballistic Missile Defense and Avenger. Boeing-built air and missile defense systems have been protecting its customers for nearly 25 years against threats ranging from intercontinental ballistic missiles to hostile aircraft.The company has a long-term earnings growth rate of 18.1%. The Zacks Consensus Estimate for BA’s 2025 sales indicates year-over-year growth of 27.5%.Lockheed Martin (LMT): Lockheed’s product portfolio includes the Patriot Advanced Capability-3 and Terminal High-Altitude Area Defense air and missile defense programs. It also manufactures the Multiple Launch Rocket System, the Joint Air-to-Surface Standoff Missile and Javelin tactical missile programs, alongside other tactical missiles.The company has a long-term earnings growth rate of 10.5%. The Zacks Consensus Estimate for LMT’s 2025 sales indicates year-over-year growth of 4.7%.RTX Stock’s Price MovementRTX’s shares have risen 23.4% in the past six months compared with the industry’s 21.4% growth.Image Source: Zacks Investment ResearchRTX’s Zacks RankRTX currently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They includeStock #1: A Disruptive Force with Notable Growth and ResilienceStock #2: Bullish Signs Signaling to Buy the DipStock #3: One of the Most Compelling Investments in the MarketStock #4: Leader In a Red-Hot Industry Poised for GrowthStock #5: Modern Omni-Channel Platform Coiled to SpringMost of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.Download Atomic Opportunity: Nuclear Energy's Comeback free today.Want 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 The Boeing Company (BA): Free Stock Analysis Report Lockheed Martin Corporation (LMT): Free Stock Analysis Report Northrop Grumman Corporation (NOC): Free Stock Analysis Report RTX Corporation (RTX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks