RTX Corporation’s RTX business segment, Raytheon, recently secured a deal to support the Evolved Seasparrow Missile (ESSM) and NATO Seasparrow Missile Systems (NSMS) programs. The award has been provided by the Naval Sea Systems Command, Washington, D.C.
Details of RTX’s Deal
Valued at $18.5 million, the contract is expected to be completed by December 2025. Per the terms of the deal, RTX will provide engineering and technical services in support of the ESSM and NSMS programs.
The majority of the work related to this contract will be executed in Tucson, AZ, and Portsmouth, RI.
What’s Favoring RTX Stock?
Rising military conflicts, terrorism and border disputes have led nations 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 Mordor Intelligence to forecast a compound annual growth rate of 5% for the global missiles and missile defense systems market during the 2025-2030 time period.
Such market projections indicate solid growth opportunities for RTX, which has a handful of combat-proven missiles in its product portfolio, like the TOW missile, Guidance Enhanced Missile, Tomahawk, Standard Missile 2 and a few more. Notably, such a wide range of missiles in its portfolio enables RTX to secure valuable contracts like the latest one, which, in turn, should bolster its future revenue prospects.
Prospects of RTX’s Peers
Other defense companies that are likely to enjoy the perks of the expanding missiles and missile system market have been discussed below.
Northrop Grumman Corporation 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 develops and 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 4.2%. The Zacks Consensus Estimate for NOC’s 2025 sales indicates year-over-year growth of 3%.
The Boeing Company BA: It manufactures various missile defense systems, including the Ground-based Midcourse Defense, Aegis Ballistic Missile Defense and Avenger. Boeing-built and supported 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 17.4%. The Zacks Consensus Estimate for BA’s 2025 sales indicates year-over-year growth of 25.6%.
Lockheed Martin Corporation LMT: Lockheed Martin’s missile defense program 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 7.8%. The Zacks Consensus Estimate for LMT’s 2025 sales indicates year-over-year growth of 4.6%.
RTX Stock’s Price Movement
Shares of RTX have gained 5.5% in the past month compared with the industry’s 1.3% growth.
Image Source: Zacks Investment Research
RTX’s Zacks Rank
RTX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The Boeing Company (BA): Free Stock Analysis Report
Lockheed Martin Corporation (LMT): Free Stock Analysis Report
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RTX Corporation (RTX): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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