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.
Raytheon (RTX) Wins $14.4M Deal to Support Patriot Missile
Read MoreHide Full Article
Raytheon Technologies Corp.’s (RTX - Free Report) business unit, Missiles and Defense, recently secured a contract involving the Patriot missile. The Defense Logistics Agency Aviation, Redstone Arsenal, AL, has awarded the deal.
Valued at $14.4 million, per this contract, Raytheon will supply parts of the Patriot missile. The work is scheduled to be completed by Feb 17, 2026.
Importance of the Patriot Missile
Patriot is a long-range, high-altitude, all-weather missile defense system. It has been 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 meet the ever-changing dynamics of the defense landscape, Patriot has been continually embracing new technologies to stay ahead of evolving threats. The continuous improvements, enhancements and upgrades have resulted in Raytheon witnessing a strong inflow of orders for Patriot. The latest contract win is a bright example of that.
Patriot missile’s strong demand can be gauged from the fact that RTX has built more than 240 Patriot fire units and delivered them to customers in 18 nations. This signals the strong positioning of the product in the defense landscape, which continues to boost Raytheon’s revenues from the Missiles and Defense business unit.
Growth Prospects
The missile market may continue to witness strong demand as nations fortify their defense spending to strengthen their warfare capabilities. Per the reports from Markets and Markets, the global missile defense system market is expected to witness a CAGR of 3.9% from 2021 to 2026. Such abounding growth projections stand to benefit Raytheon, which boasts a strong portfolio of efficient missiles.
Apart from RTX, other defense majors that may benefit from the expanding missile market size are as follows:
Northrop Grumman (NOC - Free Report) is a prominent developer of missile systems and counter systems, including strategic deterrents, subsystems and components. To strengthen its position in the missile market, Northrop had acquired Orbital ATK in 2018, which used to be one of the industry leaders in providing missile components across air, sea and land-based systems.
Northrop has a long-term earnings growth rate of 3.5%. Its investors have gained 2.2% in the past year.
Lockheed Martin’s (LMT - Free Report) Missiles and Fire Control business unit develops, manufactures and supports advanced combat, missile, rocket, manned and unmanned systems for military customers. Some of its product range includes the PAC-3 family of missiles, M270, RRPR, THHAD, etc.
Lockheed Martin’s long-term earnings growth rate is 6.9%. Shares of LMT have returned 6.5% value to investors in the past year.
General Dynamics’ (GD - Free Report) Ordnance and Tactical Systems is the system integrator of the 2.75-inch Hydra-70 family of rockets. It also produces composite rocket motor cases and launches tubes for tactical and strategic missiles.
General Dynamics boasts a long-term earnings growth rate of 8.6%. Shares of GD have increased 4.3% in the past month.
Price Movement
In the past six months, shares of Raytheon Technologies have rallied 17.7% compared with the industry’s growth of 12.9%.
Image: Bigstock
Raytheon (RTX) Wins $14.4M Deal to Support Patriot Missile
Raytheon Technologies Corp.’s (RTX - Free Report) business unit, Missiles and Defense, recently secured a contract involving the Patriot missile. The Defense Logistics Agency Aviation, Redstone Arsenal, AL, has awarded the deal.
Valued at $14.4 million, per this contract, Raytheon will supply parts of the Patriot missile. The work is scheduled to be completed by Feb 17, 2026.
Importance of the Patriot Missile
Patriot is a long-range, high-altitude, all-weather missile defense system. It has been 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 meet the ever-changing dynamics of the defense landscape, Patriot has been continually embracing new technologies to stay ahead of evolving threats. The continuous improvements, enhancements and upgrades have resulted in Raytheon witnessing a strong inflow of orders for Patriot. The latest contract win is a bright example of that.
Patriot missile’s strong demand can be gauged from the fact that RTX has built more than 240 Patriot fire units and delivered them to customers in 18 nations. This signals the strong positioning of the product in the defense landscape, which continues to boost Raytheon’s revenues from the Missiles and Defense business unit.
Growth Prospects
The missile market may continue to witness strong demand as nations fortify their defense spending to strengthen their warfare capabilities. Per the reports from Markets and Markets, the global missile defense system market is expected to witness a CAGR of 3.9% from 2021 to 2026. Such abounding growth projections stand to benefit Raytheon, which boasts a strong portfolio of efficient missiles.
Apart from RTX, other defense majors that may benefit from the expanding missile market size are as follows:
Northrop Grumman (NOC - Free Report) is a prominent developer of missile systems and counter systems, including strategic deterrents, subsystems and components. To strengthen its position in the missile market, Northrop had acquired Orbital ATK in 2018, which used to be one of the industry leaders in providing missile components across air, sea and land-based systems.
Northrop has a long-term earnings growth rate of 3.5%. Its investors have gained 2.2% in the past year.
Lockheed Martin’s (LMT - Free Report) Missiles and Fire Control business unit develops, manufactures and supports advanced combat, missile, rocket, manned and unmanned systems for military customers. Some of its product range includes the PAC-3 family of missiles, M270, RRPR, THHAD, etc.
Lockheed Martin’s long-term earnings growth rate is 6.9%. Shares of LMT have returned 6.5% value to investors in the past year.
General Dynamics’ (GD - Free Report) Ordnance and Tactical Systems is the system integrator of the 2.75-inch Hydra-70 family of rockets. It also produces composite rocket motor cases and launches tubes for tactical and strategic missiles.
General Dynamics boasts a long-term earnings growth rate of 8.6%. Shares of GD have increased 4.3% in the past month.
Price Movement
In the past six months, shares of Raytheon Technologies have rallied 17.7% compared with the industry’s growth of 12.9%.
Image Source: Zacks Investment Research
Zacks Rank
Raytheon Technologies currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.