Raytheon Technologies Corp.’s RTX Missiles and Defense business unit recently secured a $495.1 million contract to provide program support and annual sustainmentfor advanced medium range air to air missile (AMRAAM). Work related to the deal will be executed in Tucson, AZ.
In particular, the company will offer non-warranty repairs, program support, contractor logistics support and service life prediction program analysis supporting the AMRAAM weapon system. The deal, awarded by the Air Force Life Cycle Management Center, Eglin Air Force Base, FL, is scheduled to be completed by Jun 30, 2026.
Attributes of AMRAAM
Raytheon’s AMRAAM is a versatile combat-proven air dominance weapon. Its capabilities have been fully demonstrated in over 4,200 test shots and 10 air-to-air combat victories. Notably, this weapon’s advanced active guidance section provides aircrew with a high degree of combat flexibility and lethality.
AMRAAM is currently being used by 37 countries across the globe, including the United States. This missile has been integrated in some of the renowned fighter jets like Boeing’s BA F-15 and F/A-18and Lockheed Martin’s LMT F-22, to name a few.
What’s Favoring Raytheon?
In recent times, missile defense has steadily emerged to play a pivotal role in a nation’s defense strategy due to increasing geo-political tensions across the globe. With regard to the United States, the nation’s latest cross-border tiffs with Russia and earlier with North Korea have prompted the U.S. government to spend copiously onmissiles.
As a result, Raytheon Technologies, a prominent U.S. missile maker, has been clinching significant awards for the enhancement of its missile defense systems with latest technologies and providing its end users with complex technical services. The latest acquired contact is one such example.
Considering the latest deal and a few other contracts secured by the company in recent times, we expect its Missiles and Defense segment to reflect solid top-line performance in the coming days.
The U.S. fiscal 2021 defense budget proposal provisioned $20.3 billion for major war-fighting investments in missile defense. This should enable Raytheon Technologies to clinch more contracts related to missile defense systems and associated services, considering the company’s proven expertise in varied missile systems.
Other major missile defense players like General Dynamics GD, Boeing and Lockheed Martin are also expected to benefit from the aforementioned budget provision.
In the past month, Raytheon Technologies has lost 8.4% compared with the industry’s 10.5% decline.
Zacks Rank & Stock to Consider
Raytheon Technologies currently carries a Zacks Rank #5 (Strong Sell).
A better-ranked stock in the same sector is Lockheed Martin, which holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Lockheed delivered average positive earnings surprise of 7.40% in the trailing four quarters. The company has a long-term earnings growth rate of 6.9%.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers 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
General Dynamics Corporation (GD) : Free Stock Analysis Report
Lockheed Martin Corporation (LMT) : Free Stock Analysis Report
Raytheon Technologies Corporation (RTX) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research