U.S. Air Force awards Raytheon with over $340 million contract: RTX stock to rally?

A rising number of geopolitical conflicts marked the last few years for the world population. War is an expensive endeavor, with billions of dollars of capital deployment fueling the defense sector.

Notably, technological advancement has given protagonism to military drones and smart weapons, such as the StormBreaker by Raytheon. Raytheon is one of the three subsidiaries of RTX (NYSE: RTX), providing offensive and defense solutions to the United States for over 100 years.

Now, the U.S. Air Force has signed a $345 million contract with Raytheon to produce 1,500 StormBreakers. RTX’s press release describes this weapon as follows:

“StormBreaker is the leading air-to-surface, network-enabled weapon that can engage moving targets in all weather conditions using its multi-effects warhead and tri-mode seeker.”

— RTX

Paul Ferraro, president of Air Power at Raytheon, has also commented on this recent Air Force contract:

“Fielded on two platforms with testing underway for others, StormBreaker has solidified its place as the leading network-enabled weapon across the Department of Defense. With this contract, we’ll continue to evolve StormBreaker’s production to meet the needs of servicemembers for years to come.”

— Paul Ferraro

RTX stocks price analysis amid recent Air Force contract

The $345 million contract with the U.S. Air Force has propelled RTX stocks’ performance on January 3. Interestingly, Raytheon stocks outperformed the S&P 500 index (SP: SPX). It happened during a losing day for the overall stock market while military stocks prevailed.

In particular, RTX is trading at $86.36 by press time, up 1.20% in the last 24 hours. Moreover, Raytheon stocks have accumulated impressive 26% gains from their yearly lows at $68.56 per share on October 6, 2023.

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