RTX Corporation ( RTX Quick Quote RTX - Free Report) recently secured a contract involving the Phased Array Tracking Radar to Intercept of Target (“PATRIOT”). Per the deal, the company will be accountable for providing depot operations, technical assistance and new equipment training for PATRIOT. The Army Contracting Command, Redstone Arsenal, AL, has awarded the deal.
Valued at $145 million, the contract is scheduled to be completed by Nov 30, 2025. The work related to the deal will be carried out in Doha, Qatar.
What’s Favoring RTX?
PATRIOT is a long-range, high-altitude, all-weather missile defense system designed to counter threats from tactical ballistic missiles, cruise missiles and advanced fighter aircraft. The system consists of radars, command-and-control technology and other multiple interceptors. It is designed and engineered to detect tactical ballistic missiles, cruise missiles, drones, advanced aircraft and other threats.
To maintain product visibility, RTX continually enhances its technology to align with evolving threats. The company has been modernizing the entire PATRIOT system over the past 17 years.
Due to military operations capabilities, RTX witnesses strong demand for PATRIOT. This product’s solid demand can be gauged by the fact that 240 Patriot fire units have been delivered so far, with 18 nations currently using PATRIOT for their integrated air and missile defense.
The product favors RTX’s revenue generation prospects due to its worldwide acceptance, which results in a consistent flow of orders for the company, like the latest one. Going forward, per the report from the Mordor Intelligence firm, the global missiles and missile defense system market is poised to witness a CAGR of 4.8% over the 2023-2028 period.
This further enhances RTX’s prospects to lock in more orders for PATRIOT, considering the efficiency of the product that efficiently fulfills military mission requirements.
As global threats continue to rise, apart from RTX, defense contractors that are likely to benefit from the growth opportunities offered by the missiles and missile defense system market are as follows:
Northrop Grumman ( NOC Quick Quote NOC - Free Report) : It designs and produces missile products, including advanced high-speed propulsion systems, fuses, warheads, etc. The company is a leading provider of solid rocket propulsion for air-launched missiles, interceptors, submarine-launched systems, and hypersonic missile systems.
Northrop has a long-term earnings growth rate of 2.4%. Its investors have gained 7.7% in the past six months.
Lockheed Martin ( LMT Quick Quote LMT - Free Report) : Its Missiles and Fire Control business unit develops, manufactures and supports advanced combat, missile, rocket, manned and unmanned systems for military customers. Some of its products are the PAC-3 family of missiles, M270, RRPR, THHAD, etc.
Lockheed has a long-term earnings growth rate of 8.6%. The Zacks Consensus Estimate for 2023 sales suggests a growth rate of 0.9% from the prior-year reported figure.
General Dynamics ( GD Quick Quote GD - Free Report) : Its Ordnance and Tactical Systems (“OTS”) designs, develops and produces a comprehensive range of sophisticated weapon systems for ground forces. The unit also produces next-generation weapon systems for shipboard and aircraft applications. OTS holds a leading position in providing missile subsystems for U.S. tactical and strategic missiles.
General Dynamics’ long-term earnings growth rate is pegged at 8.9%. Shares of GD have returned 19.3% value to its investors in the past six months.
In the past month, shares of RTX Corp. have decreased 0.1% compared to the
industry’s growth of 5.6%. Image Source: Zacks Investment Research Zacks Rank
RTX Corp. currently carries a Zacks Rank #3 (Hold). You can see
. the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here