Raytheon secures $1 billion US defense contract beating Lockheed Martin and Boeing

Raytheon secures $1 billion US defense contract beating Lockheed Martin and Boeing

Raytheon Technologies (NYSE: RTX) was awarded a US Department of Defense contract worth $985 million on September 22. More notably, Raytheon beat out Lockheed Martin (NYSE: LMT) and Boeing (NYSE: BA) for the contract. 

The task order is for the Hypersonic Attack Cruise Missile (HACM) for the US Air Force, where Raytheon would be tasked with weapon system design and development. Meanwhile, the initial delivery will depend on model-based critical design review, qualification, integration, manufacturing, and testing performance.  

Furthermore, the HACM uses air-breathing propulsion to reach five times the speed of sound and will be the second hypersonic missile for the US Air Force, following the Lockheed one contracted a few months ago. 

RTX chart and analysis 

RTX is part of the Aerospace & Defense industry, with 73 other stocks in this industry outperforming 64% of them. 

Over the last month, the stock traded in a wide range from $83.20 to $96.83, staying below all moving averages. Technical analysis indicates a support line at $83.44 and a resistance zone from $87.69 to $88.04. 

RTX 20-50-200 SMA lines chart. Source. Finviz.com data. See more stocks here.

TipRanks analysts rate the shares a ‘strong buy,’ with the average price in the next 12 months reaching $112.00, 34.21% higher than the current trading price of $83.45. Notably, out of 8 Wall Street analysts covering the stock, 7 have a buy rating while only one has a hold rating. 

Wall Street analysts’ price targets for RTX. Source: TipRanks  

Raytheon will perform the work for the US Department of Defense until March 2027, possibly delivering working prototypes during this period. 

Finally, escalating geopolitical tensions might be setting the stage for a boom in the military business as an arms race could occur in different parts of the world.

Buy stocks now with Interactive Brokers – the most advanced investment platform

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk. 

Source: https://finbold.com/raytheon-secures-1-billion-us-defense-contract-beating-lockheed-martin-and-boeing/