We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
RTX Secures a Contract to Support Rolling Airframe Missile
Read MoreHide Full Article
RTX Corp. (RTX - Free Report) recently clinched a modification contract involving the Rolling Airframe Missile (RAM). The award has been offered by the Naval Sea Systems Command, Washington, D.C.
Details of the Deal
Valued at $34.3 million, the contract is projected to be completed by March 2028. This latest modification includes options to provide design agent and engineering support services for the Rolling Airframe Missile.
Work related to this contract will be executed in Tucson, AZ.
How Will the Deal Favor RTX?
Increasing geopolitical tensions worldwide have prompted nations to strengthen their defense systems manifold. With rapid technological upgrades, missile defense has steadily become pivotal in a nation’s defense strategy. With the United States being the world’s largest weapon supplier and RTX a prominent U.S. missile maker, the increased missile defense adoption by nations provides the company with solid growth opportunities.
RTX’s RAM guided missile weapon system is the world's most modern ship self-defense weapon and is designed to provide exceptional protection for ships of all sizes. RAM is currently deployed on more than 165 ships in 11 countries, ranging from 500-ton fast-attack crafts to 95,000-ton aircraft carriers.
Further, RAM’s latest version, the Block 2 variant, has a larger rocket motor, an advanced control section and an enhanced RF receiver capable of detecting the quietest of threat emitters. These improvements have made RAM two and a half times more maneuverable, with one and a half times the effective intercept range.
As far as this program’s latest development is concerned, licensed production of the RAM system's guided missile round pack is currently underway in Korea. In 2018, RTX delivered a RAM launcher to the Mexican Navy as part of the long-range, off-shore patrol vessel program. It was the first delivery of a RAM product to a Latin American country.
The aforementioned discussion reflects the solid demand that RTX’s RAM enjoys in the missile defense space. The latest contract win is a further testament to that and is expected to bolster RTX’s revenues in the coming quarters.
Growth Prospects
Per a report by the Markets and Markets firm, the global rocket and missile market is projected to witness a CAGR of 6.1% during the 2023-2028 period to reach $77.4 million by 2028. Such massive growth projections indicate solid opportunities for RTX and other major defense primes like Northrop Grumman (NOC - Free Report) , Lockheed Martin (LMT - Free Report) and Boeing (BA - Free Report) , which specialize in developing technologically advanced missiles.
Northrop Grumman’s missile defense program includes AGM-88E advanced anti-radiation guided missiles, the Ground Based Strategic Deterrent weapon system and rocket propulsion systems. In August 2022, the company had been chosen by the U.S. Missile Defense Agency to lead the Homeland Missile Defense Program.
Northrop currently boasts a long-term earnings growth rate of 2.4%. The Zacks Consensus Estimate for NOC’s 2023 sales implies an improvement of 6.6% from the 2022 reported figure.
Lockheed Martin’s missile defense program includes the Patriot Advanced Capability-3 (PAC-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.
Lockheed has a long-term earnings growth rate of 8.6%. The stock has gained 6% in the past three months.
Likewise, Boeing-built and supported air and missile defense systems have protected the nation, warfighters, allies and international partners against threats ranging from intercontinental ballistic missiles to hostile aircraft for almost 25 years. Its missile and missile portfolio includes Aegis Ballistic Missile Defense, Avenger, Ground-Based Midcourse Defense and PAC-3 Missile Seeker.
The Zacks Consensus Estimate for Boeing’s 2023 sales implies an improvement of 15.4% from the 2022 reported figure. The stock has a long-term earnings growth rate of 4%.
Price Performance
In the past three months, RTX’s shares have rallied 10.2% compared with the industry’s 6.4% growth.
Image: Bigstock
RTX Secures a Contract to Support Rolling Airframe Missile
RTX Corp. (RTX - Free Report) recently clinched a modification contract involving the Rolling Airframe Missile (RAM). The award has been offered by the Naval Sea Systems Command, Washington, D.C.
Details of the Deal
Valued at $34.3 million, the contract is projected to be completed by March 2028. This latest modification includes options to provide design agent and engineering support services for the Rolling Airframe Missile.
Work related to this contract will be executed in Tucson, AZ.
How Will the Deal Favor RTX?
Increasing geopolitical tensions worldwide have prompted nations to strengthen their defense systems manifold. With rapid technological upgrades, missile defense has steadily become pivotal in a nation’s defense strategy. With the United States being the world’s largest weapon supplier and RTX a prominent U.S. missile maker, the increased missile defense adoption by nations provides the company with solid growth opportunities.
RTX’s RAM guided missile weapon system is the world's most modern ship self-defense weapon and is designed to provide exceptional protection for ships of all sizes. RAM is currently deployed on more than 165 ships in 11 countries, ranging from 500-ton fast-attack crafts to 95,000-ton aircraft carriers.
Further, RAM’s latest version, the Block 2 variant, has a larger rocket motor, an advanced control section and an enhanced RF receiver capable of detecting the quietest of threat emitters. These improvements have made RAM two and a half times more maneuverable, with one and a half times the effective intercept range.
As far as this program’s latest development is concerned, licensed production of the RAM system's guided missile round pack is currently underway in Korea. In 2018, RTX delivered a RAM launcher to the Mexican Navy as part of the long-range, off-shore patrol vessel program. It was the first delivery of a RAM product to a Latin American country.
The aforementioned discussion reflects the solid demand that RTX’s RAM enjoys in the missile defense space. The latest contract win is a further testament to that and is expected to bolster RTX’s revenues in the coming quarters.
Growth Prospects
Per a report by the Markets and Markets firm, the global rocket and missile market is projected to witness a CAGR of 6.1% during the 2023-2028 period to reach $77.4 million by 2028. Such massive growth projections indicate solid opportunities for RTX and other major defense primes like Northrop Grumman (NOC - Free Report) , Lockheed Martin (LMT - Free Report) and Boeing (BA - Free Report) , which specialize in developing technologically advanced missiles.
Northrop Grumman’s missile defense program includes AGM-88E advanced anti-radiation guided missiles, the Ground Based Strategic Deterrent weapon system and rocket propulsion systems. In August 2022, the company had been chosen by the U.S. Missile Defense Agency to lead the Homeland Missile Defense Program.
Northrop currently boasts a long-term earnings growth rate of 2.4%. The Zacks Consensus Estimate for NOC’s 2023 sales implies an improvement of 6.6% from the 2022 reported figure.
Lockheed Martin’s missile defense program includes the Patriot Advanced Capability-3 (PAC-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.
Lockheed has a long-term earnings growth rate of 8.6%. The stock has gained 6% in the past three months.
Likewise, Boeing-built and supported air and missile defense systems have protected the nation, warfighters, allies and international partners against threats ranging from intercontinental ballistic missiles to hostile aircraft for almost 25 years. Its missile and missile portfolio includes Aegis Ballistic Missile Defense, Avenger, Ground-Based Midcourse Defense and PAC-3 Missile Seeker.
The Zacks Consensus Estimate for Boeing’s 2023 sales implies an improvement of 15.4% from the 2022 reported figure. The stock has a long-term earnings growth rate of 4%.
Price Performance
In the past three months, RTX’s shares have rallied 10.2% compared with the industry’s 6.4% growth.
Image Source: Zacks Investment Research
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.