RTX's Raytheon Unit Wins a Contract to Aid Standard Missile-6 Program

RTX Corporation’s RTX unit, Raytheon, recently secured a $49.8 million modification contract encompassing the manufacturing, assembly, testing and delivery of Standard Missile-6 (SM-6) Tactical All-Up Rounds to support the program’s full-rate production. 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 Tucson, AZ, and East Camden, AR. This contract is projected to be completed by April 2029.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 SM-6.In particular, SM-6 missile defends against air, surface and ballistic threats, offering cost-effective protection for 60 naval ships. With more than 500 units delivered to the U.S. Navy, its advanced features continue to drive demand, further corroborated by the latest contract award.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 3.3%. The Zacks Consensus Estimate for NOC’s 2025 sales indicates year-over-year growth of 2.8%.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 25.6%.Lockheed Martin LMT: Lockheed Martin’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 shares have risen 25.1% in the past six months compared with the industry’s 23.3% 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.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>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