RTX Corporation, an aerospace and defense company, provides systems and services for the commercial, military, and government customers in the United States and internationally. It operates through three segments: Collins Aerospace, Pratt & Whitney, and Raytheon. The Collins Aerospace Systems segment offers aerospace and defense products, and aftermarket service solutions for civil and military aircraft manufacturers and commercial airlines, as well as regional, business, and general aviation, defense, and commercial space operations. This segment also designs, produces, and supports cabin interior, including oxygen systems, food and beverage preparation, storage and galley systems, and lavatory and wastewater management systems; battlespace, test and training range systems, crew escape systems, and simulation and training solutions; information management services; and aftermarket services that include spare parts, overhaul and repair, engineering and technical support, training and fleet management solutions, and asset and information management services. Its Pratt & Whitney segment supplies aircraft engines for commercial, military, business jet, and general aviation customers; and produces, sells, and services military and commercial auxiliary power units. The Raytheon segment provides defensive and offensive threat detection, tracking, and mitigation capabilities for U.S., foreign government, and commercial customers. The company was formerly known as Raytheon Technologies Corporation and changed its name to RTX Corporation in July 2023. RTX Corporation was incorporated in 1934 and is headquartered in Arlington, Virginia.

RTX Corporation

Howmet Aerospace Inc. HWM has been grappling with rising costs and expenses over time. HWM reported an uptick in costs and expenses during the second quarter of 2025. The company’s cost of sales rose 6.1% year over year in the quarter due to increasing input costs and net headcount. While the metric remained flat in first-quarter 2025, it increased 7.3% year over year in 2024.
Despite the rising costs, HWM has consistently delivered margin expansion in recent quarters, reflecting its commitment to sustaining long-term profitability. The company’s adjusted EBITDA margin improved from 26.5% in the third quarter of 2024 to 26.8% in the fourth quarter and further jumped to 28.8% in the first quarter of 2025. In the second quarter of 2025, HWM sustained this momentum with a margin of 28.7%, marking a 300-basis point improvement year over year.
Also, the Engine Products, Fastening Systems and Engineered Structures segments posted adjusted EBITDA margin improvements of 200, 360 and 690 basis points in the second quarter, respectively, supported by manufacturing footprint optimization and a favorable product mix. Strong pricing strategies, disciplined cost control and enhanced operational efficiency have helped Howmet Aerospace sustain its margin performance.
Strong momentum in both the commercial and defense aerospace markets is further supporting its performance. Driven by strength across its businesses, HWM has raised its 2025 guidance for adjusted EBITDA margin. The company now expects adjusted EBITDA margin to be between 28.5% and 28.6% in 2025 compared with 27.8-28.2% projected earlier. This raise shows HWM’s confidence in delivering solid performance for the rest of the year.
Margin Performance of HWM’s Peers
Among its major peers, GE Aerospace’s GE cost of sales surged 22.8% year over year in the second quarter of 2025. However, GE Aerospace’s adjusted operating profit increased 23% year over year. However, GE Aerospace’s adjusted operating margin was down 10 basis points year over year.
RTX Corporation’s RTX total costs and expenses increased 6.4% year over year to $19.48 billion in the second quarter of 2025. RTX Corp. generated an adjusted operating profit of $2.79 billion. RTX Corp.’s Collins Aerospace segment’s adjusted operating profit totaled $1.25 billion compared with $1.15 billion in the year-ago quarter.
HWM's Price Performance, Valuation and Estimates
Shares of Howmet Aerospace have surged 92.6% in the past year compared with the industry’s growth of 13.6%.
Image Source: Zacks Investment Research
From a valuation standpoint, HWM is trading at a forward price-to-earnings ratio of 44.15X, above the industry’s average of 27.76X. Howmet Aerospace carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HWM’s earnings has been on the rise over the past 60 days.
Image Source: Zacks Investment Research
Howmet Aerospace currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Howmet Aerospace's Expenses are on the Rise: Will It Affect Margins?

The rising demand for advanced missile systems worldwide, driven by growing defense budgets and the rapid modernization of military arsenals, is fueling growth opportunities for missile-focused defense contractors. As nations are increasingly investing in varied missile products ranging from hypersonic weapons to multi-use aerial targets, Kratos Defense & Security Solutions KTOS stands to gain from the aforementioned demand trend.
The company’s offerings play a key role in U.S. missile defense initiatives, from enabling real-world testing of hypersonic systems to supplying ground hardware for missile launch platforms.
In recent months, Kratos has strengthened its standing in the missile defense space with notable developments. In May 2025, the company’s Aegis Readiness Assessment Vehicle Type B (ARAV-B) medium-range ballistic missile target was successfully launched and intercepted during NATO’s Formidable Shield 25 exercise, highlighting the reliability of its threat-representative targets.
Moreover, in March, Kratos broke ground on its 68,000-square-foot Hypersonic System Indiana Payload Integration Facility in Crane, IN. This $50 million project will support payload integration and testing for the MACH-TB hypersonic testbed program. In the same month, Kratos secured a $3.4 million U.S. Navy contract to continue logistics and engineering support for its widely deployed BQM-177A target drone, which emulates cruise missile threats for U.S. and allied forces.
These recent achievements position Kratos to further strengthen its role as a rising player in the missile defense market.
Other Defense Stocks Riding on Missile Modernization Initiatives
As nations worldwide race to modernize their missile arsenals, prominent missile-focused defense contractors like Lockheed Martin LMT and RTX Corporation RTX are gaining steady momentum through notable contract wins.
In September 2025, Lockheed Martin secured a $9.8 billion contract for the production of 1,970 Patriot Advanced Capability - 3 Missile Segment Enhancement (PAC-3 MSE) interceptors and associated hardware. In August, Lockheed won a $720 million contract for the production of 160 Joint Air-to-Ground Missiles and HELLFIRE missiles.
On the other hand, in August, RTX’s Raytheon unit signed a memorandum of understanding with Diehl Defence to co-produce key elements of the Stinger missile in Europe. Moreover, in July, the company won a $74 million contract to produce RAM Guided Missile Launching Systems for the U.S. Navy.
KTOS’ Price Performance, Valuation and Estimates
Shares of KTOS have gained 203.4% in the past year compared with the industry’s 37.2% growth.
Image Source: Zacks Investment Research
The company shares are trading at a discount, with its forward 12-month Price/Sales being 7.46X compared with its industry’s average of 10.12X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for KTOS’ 2025 and 2026 earnings has improved over the past 60 days.
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KTOS stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Hypersonics to Drones: Kratos' Growing Ground in Missile Defense

Increasing investments from global airlines in the maintenance, repair, and overhaul (“MRO”) of their ageing fleet to meet the rapidly rising air passenger traffic have been fueling growth for TAT Technologies Ltd. TATT, a provider of aircraft MRO services. Rising defense budgets, which are boosting the demand for the production and modernization of military jets worldwide, also remain a growth driver for TATT.
However, in the first quarter of 2025, the company experienced softer demand in its MRO business due to supply-chain challenges and the timing of orders. This softness mellowed down to moderate MRO intake in the second quarter.
With the ongoing tariff-related uncertainty expected to further exacerbate the already weak supply-chain condition of the aerospace industry, TATT’s MRO business may continue to be under pressure for some time in the near term. To this end, the company’s CEO also mentioned in the second-quarterearnings callthat he expects ongoing quarter-to-quarter volatility, including potential short-term fluctuations in MRO intake, to continue in the near term.
Nevertheless, since July 2025, TATT’s MRO intake has started to recover, which, along with its recent contract wins, might result in an uptick in its MRO business’s revenues, probably by the end of 2025 or the first half of 2026.
Notably, in August 2025, TATT secured a $12 million contract to deliver MRO services for the GTCP331-500 APU on Boeing 777 aircraft. Moreover, in May, the company signed an MRO agreement with a leading global cargo carrier, extending its APU repair work on 767 and 757 fleet to cover the airline’s worldwide operations, while also adding support for B737 and A300 platforms.
Other Companies Expanding MRO Capabilities
Like TAT Technologies, other aerospace and defense stocks, such as RTX Corporation RTX and The Boeing Company BA, are also strengthening their MRO networks to meet the rising global demand.
Notably, in February, RTX Corp.’s Pratt & Whitney unit announced a partnership with Sanad Group to expand its global MRO footprint for GTF engines. The collaboration includes establishing a new state-of-the-art MRO facility in Al Ain, UAE.
Meanwhile, in April, Boeing signed an agreement with Metallic Ladder to distribute specialized ground support equipment for aviation maintenance. In May, Boeing opened its third distribution center in Germany, which has the capacity to store more than 9,000 unique parts for Boeing aircraft.
TATT’s Price Performance, Valuation and Estimates
Shares of TATT have gained 110.4% in the past year compared with the industry’s 35.5% growth.
Image Source: Zacks Investment Research
The company shares are trading at a discount, with its forward 12-month Price/Sales being 2.16X compared with its industry’s average of 10.05X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for TATT’s near-term earnings has improved over the past 60 days.
Image Source: Zacks Investment Research
TATT stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Will TAT Technologies Overcome Its MRO Softness and Shine Again?

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Industrial Select Sector SPDR Fund (Symbol: XLI) where we have detected an approximate $247.1 million dollar outflow -- that's a 1.1% decrease week over week (from 154,126,000 to 152,476,000). Among the largest underlying components of XLI, in trading today RTX Corp (Symbol: RTX) is up about 0.1%, GE Vernova Inc (Symbol: GEV) is up about 2.1%, and Honeywell International Inc (Symbol: HON) is up by about 0.6%. For a complete list of holdings, visit the XLI Holdings page » The chart below shows the one year price performance of XLI, versus its 200 day moving average:
Looking at the chart above, XLI's low point in its 52 week range is $112.75 per share, with $155.15 as the 52 week high point — that compares with a last trade of $150.38. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
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Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

XLI, RTX, GEV, HON: ETF Outflow Alert

RTX Corporation’s (RTX) commercial aerospace aftermarket segment has proved to be a key performance driver for the company in recent quarters, thanks to steadily growing air traffic necessitating increased usage of aftermarket parts and services. Indeed, the rising number of airline passengers in the post-pandemic era has been fueling demand for aircraft maintenance and repair services, especially as airlines continue to operate older fleets due to new aircraft production delays.
As a result, the robust aftermarket activity in commercial aerospace helped RTX achieve a solid 9% year-over-year organic sales increase in its last reported quarter, partially driven by double-digit growth witnessed in its commercial aftermarket sales. For the first quarter of 2025, the company registered a similar robust growth of 21% in its commercial aftermarket sales.
With global air passenger traffic expected to grow 5.8% year over year in 2025, as predicted by the International Air Transport Association (“IATA”) in its June 2025 outlook, we expect RTX’s commercial aftermarket sales to continue to show stable growth trends in the coming quarters.
However, the recently heightened import tariffs by the U.S. government, particularly on steel and aluminum, can be expected to pose a risk and even curb the extent of the liftoff in its commercial aftermarket business. In particular, these tariffs, expected to result in a plausible upward cost pressure on aftermarket parts manufacturing, prompted RTX to revise its 2025 profit forecast downward. The company now projects its adjusted earnings per share to be in the $5.80-$5.95 range, down from the previous guidance.
Nevertheless, RTX’s outsized growth in the commercial aftermarket should continue to offer it a solid buffer and strong incentive for long-term investors, provided it can successfully navigate industry headwinds and sustain operational momentum.
Other Stocks to Get the Tariff Heat
RTX apart, other aerospace stocks, such as Boeing (BA) and Lockheed Martin (LMT), which serve the commercial aftermarket industry, remain vulnerable to tariff impacts and may bear the brunt of the resulting cost pressure.
Notably, Boeing Global Services (“BGS”) unit’s parts distribution network provides access to more than 15 million parts worldwide. The company offers a variety of maintenance, repair, and overhaul (“MRO”) services, as well as airplane storage services, at several locations worldwide, including China, Ireland, the UK, and the United States.
On the other hand, Lockheed Martin’s Derco has been providing maintenance, fleet management, upgrades, and a wide range of aircraft spares and components to commercial customers worldwide since 1979. Some of the commercial aircraft platforms that Derco serves include Boeing 747, 777, Airbus A320 and A340.
The Zacks Rundown for RTX
Shares of RTX have surged 30.6% in the past year compared with the industry’s growth of 14.7%.
Image Source: Zacks Investment Research
From a valuation standpoint, RTX is currently trading at a forward 12-month earnings of 24.70X, a discount when stacked up with the industry average of 28.04X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for RTX’s near-term earnings has moved south over the past 60 days.
Image Source: Zacks Investment Research
RTX stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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RTX's Commercial Aftermarket Liftoff: Can It Overcome Tariff Gravity?

BAE Systems plc BAESY recently secured a contract involving Advanced Precision Kill Weapon System II (APKWS). The award was offered by the Naval Air Systems Command, Patuxent River, MD.
Details of BAESY’s Deal
Per the terms of the deal, BAESY will manufacture and deliver up to 55,000 APKWS II units to support the upgrade of the current 2.75-inch Rocket System to a semi-active, laser-guided precision weapon for the U.S. Navy, Army and Foreign Military Sales customers.
Valued at $1.74 billion, the contract is anticipated to be completed by December 2031. A major portion of the work related to this contract will be executed in Hudson, NH; Whippany, NJ and Plymouth, United Kingdom.
What’s Favoring BAESY Stock?
With countries worldwide enhancing their defense capabilities, spending on advanced military arms and munitions, including rocket and missile systems, has been rapidly increasing. BAESY, as a prominent manufacturer of rocket and missile systems, is benefiting from this trend through a steady flow of orders like the latest one.
Notably, BAE Systems’ APKWS laser guidance kit has been proven in combat for more than a decade, transforming standard 70mm rockets into precision-guided munitions. It delivers pinpoint accuracy with minimal collateral damage, ensuring reliable lethality when it matters most.
The fact that BAESY has delivered more than 50,000 units of APKWS guidance kits to date, along with its recent investments of over $100 million in infrastructure improvements to expand production, surely reflects the solid demand enjoyed by APKWS in the global defense industry.
Growth Potential for BAESY & Other Defense Stocks
Steadily rising demand for rockets and missiles amid enhanced hostilities worldwide must have prompted Future Market Insights to project a CAGR of 6% during the 2025-2035 period for the global rockets and missiles market. Such abounding growth trends indicate ample growth opportunities for prominent market players like BAE Systems, Lockheed Martin LMT, The Boeing Company BA and RTX Corporation RTX.
Lockheed Martin’s Missiles and Fire Control business unit designs, produces, and supports advanced missiles and rockets for military forces worldwide. Its MLRS Family of Munitions offers a range of precision-strike rockets and missiles, continuously evolving to meet the changing needs of the warfighter.
LMT boasts a long-term (three to five years) earnings growth rate of 10.3%. The Zacks Consensus Estimate for 2025 sales indicates an improvement of 4.6%.
Boeing’s Precision Engagement Systems portfolio includes a range of battle-proven solutions. Its Joint Direct Attack Munition is a cost-effective guidance kit that transforms standard free-fall bombs into highly accurate, smart precision weapons.
BA boasts a long-term earnings growth rate of 17.9%. The Zacks Consensus Estimate for 2025 sales implies an increase of 28.8%.
RTX business unit, Raytheon is a leading producer of advanced military rocket and missile systems. Its SM-3 interceptor is a highly capable defensive weapon designed to detect, track and destroy short- to intermediate-range ballistic missiles.
RTX’s long-term earnings growth rate is 9.1%. The Zacks Consensus Estimate for 2025 sales implies an improvement of 6.1%.
BAESY Stock Price Movement
In the past year, BAE Systems' shares have risen 37% compared with the industry’s growth of 39.2%.
Image Source: Zacks Investment Research
BAESY’s Zacks Rank
BAE Systems currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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BAESY Wins $1.7B Deal for Advanced Precision Kill Weapon System

As nations across our planet are striving to strengthen their defense capabilities, hypersonic weapons are considered to be a potential game-changer in future warfare. This is due to their extreme speed and maneuverability, which threaten to outpace current defense systems. Since hypersonic weapons are primarily developed for use in missiles, Lockheed Martin Corp. (LMT), a prominent missile manufacturer, has been at the forefront of integrating this technology in the modern era battlefield.
The company has been developing highly advanced hypersonic technology for the past 60 years, with its portfolio including several next-generation hypersonic programs, such as the Air-launched Rapid Response Weapon (“ARRW”), Conventional Prompt Strike (“CPS”), and Long Range Hypersonic Weapon (“LRHW”).
Lockheed’s Mako multi-mission hypersonic missile is another game-changing weapon, offered for the U.S. Air Force’s Stand-in Attack Weapon (“SiAW”) program and representing the first generation of missiles designed entirely within a digital engineering ecosystem. Currently, LMT is exploring ways to make the Mako missile quicker and more cost-effective to attract potential customers for making this their next best choice for a hypersonic missile.
The company’s proven dominance in the expanding hypersonic market can be gauged from the fact that the U.S. Army’s third Multi-Domain Task Force successfully deployed LMT’s LHRW system last month, outside the continental U.S. for the first time, as part of Talisman Sabre 25 — a bilateral military exercise between America and Australia. This successful deployment not only highlights soaring demand for LMT’s hypersonic weapons among U.S. allies but also leads the way to future contract wins, as the company keeps working with DARPA, the U.S. Air Force, the U.S. Army, and the U.S. Navy to transition hypersonic concepts into operational reality.
Other Stocks Involved in Hypersonic
With China and Russia currently leading the hypersonic race, their western counterparts, especially the United States, is investing heftily in hypersonic technology to keep their prowess in the global defense map. This should fuel growth for U.S. defense contractors like RTX Corp. (RTX) and Northrop Grumman (NOC) (apart from LMT), which are heavily involved in the development of cutting-edge hypersonic technologies.
RTX’s dominance in hypersonic technology, particularly in the United States, is evident from its active involvement in the Hypersonic Air-breathing Weapon Concept program. This program is a joint effort by the Defense Advanced Research Projects Agency and the U.S. Air Force to demonstrate the feasibility of hypersonic air-breathing weapons. The company is also currently transitioning the Lower Tier Air and Missile Defense Sensor (LTAMDS) from prototype to production, a radar designed to detect and defeat advanced and next-generation threats, including hypersonic weapons.
On the other hand, Northrop Grumman plays a dual role in hypersonic by developing both hypersonic weapons and counter-hypersonic defense systems. Its scramjet propulsion technology is used in the U.S. military's Hypersonic Air-breathing Missile, while its Glide Phase Interceptor possesses the ability to detect, track, and intercept hypersonic threats.
The Zacks Rundown for LMT
Shares of Lockheed have risen 7.4% in the past month compared with the industry’s growth of 1.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, LMT is currently trading at a forward 12-month earnings multiple of 16.77, a discount when stacked up with the industry average of 28.04.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for LMT’s near-term earnings has moved south over the past 60 days.
Image Source: Zacks Investment Research
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The Hypersonic Race: How Lockheed Is Driving the Future of War

BAE Systems plc BAESY has unveiled its latest combat vehicle, CV90 MkIV, for the Czech Army, with production plans calling for 39 units to be built at the company’s Swedish facilities and 207 in the Czech Republic. Final deliveries are slated to be completed by 2030.
The staged rollout is designed to provide the Czech Army with a seamless transition, enabling crew training, integration into mechanized brigades and substantially enhancing the army’s overall capabilities.
BAE Systems’ CV90 MkIV Overview
The CV90 MkIV represents the latest evolution of the battle-tested CV90 family of combat vehicles, engineered to provide troops with a decisive edge on today’s complex battlefields. With its blend of exceptional mobility, powerful firepower and advanced protection systems, the vehicle is built to function seamlessly across a wide range of scenarios, from high-intensity combat to peacekeeping missions.
Equipped with a new engine delivering up to 1,000 horsepower and an upgraded X300 heavy-duty transmission, the CV90 MkIV raises its Gross Vehicle Weight Rating from 35-38 tons, providing an additional three tons of payload while maintaining agility.
Growth Potential for BAESY & Other Defense Stocks
Rising security challenges are driving nations to strengthen their military capabilities. As a result, defense budgets are increasingly being directed toward modernizing equipment with advanced technologies to ensure a capable and competitive force. In particular, armored combat vehicles have attracted substantial investment, given their versatility and critical role in ground operations.
Per the reports from the Mordor Intelligence firm, the global armored vehicle market is likely to register a CAGR of 5.7% during the 2025-2030 period. Such abounding growth trends indicate ample growth opportunities for BAE Systems as it enjoys a lucrative position in the armored vehicle market.
Other defense majors that are likely to reap the benefits of the expanding armored fighting vehicle market are Textron Inc. TXT, RTX Corporation RTX and General Dynamics Corp. GD.
Textron's COMMANDO armored vehicle series offers the best combination of combat-proven lethality, survivability, mobility and sustainability. This vehicle can also be used as an ambulance, armored personnel carrier or support utility vehicle in a variety of configurations.
Textron boasts a long-term (three to five years) earnings growth rate of 10%. The Zacks Consensus Estimate for 2025 sales indicates an improvement of 8.1%.
RTX’s XM30 Combat Vehicle is a next-generation tracked and armored fighting vehicle designed to meet the crucial problems of the future battlefield. It offers unrivaled troop protection and incorporates technology to keep men and women in armor ahead of the enemy.
RTX boasts a long-term earnings growth rate of 9.1%. The Zacks Consensus Estimate for 2025 sales implies an increase of 6.1%.
General Dynamics’ Land Systems unit is a global leader in designing, engineering, producing, supporting and sustaining tracked and wheeled military equipment. Its product portfolio, which includes the M1 Abrams Main Battle Tank, the Stryker and LAV family of wheeled vehicles, the M10 Booker combat vehicle and the AJAX armored brigade of fighting vehicles, enjoys strong demand in the military landscape.
GD’s long-term earnings growth rate is 10.7%. The Zacks Consensus Estimate for 2025 sales implies an improvement of 7.2%.
BAESY Stock Price Movement
In the past year, BAE Systems shares have risen 31.8% compared with the industry’s growth of 34.3%.
Image Source: Zacks Investment Research
BAESY’s Zacks Rank
BAE Systems currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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BAE Systems Supplies CV90 MkIV Combat Vehicle to Czech Army

Kratos Defense & Security Solutions, Inc. KTOS is accelerating its progress in the defense industry through robust investments and partnerships in advanced propulsion programs. As nations across the globe are rapidly enhancing their defense spending amid growing hostility worldwide, the demand for combat jets, both manned and unmanned, along with missiles, is rising exponentially, giving a steady boost to the demand for advanced propulsion systems.
In its latest attempt to benefit from this growth trend, Kratos joined hands with GE Aerospace, a well-known manufacturer of aircraft engines, in June 2025, to advance propulsion technologies for the next generation of affordable unmanned aerial systems and Collaborative Combat Aircraft-type (CCA-type) aircraft.
Following this announcement, the two companies declared that they will be opening a new 50,000-square-foot manufacturing facility in Bristow, OK. This facility, projected to be expanded to 100,000 square feet, will be ultimately used to manufacture up to five lines of the GEK (GE Aerospace-Kratos) family of turbojet engines, with the initial focus on the GEK800 product lines.
No doubt this facility, once fully operational as expected by 2026-end, should play a critical role in strengthening Kratos’ position in the propulsion market for the defense industry, with the U.S. Air Force and the Department of Defense expressing growing interest in using uncrewed CCAs in recent times.
Industry Peers With Strong Focus on Defense Propulsion Systems
Like Kratos, other defense stocks like RTX Corporation RTX and Rolls-Royce Holdings plc RYCEY, involved in propulsion systems, are also making notable progress.
RTX’s Pratt & Whitney segment continues to strengthen its propulsion portfolio with new defense contracts. Notably, in June 2025, Pratt & Whitney secured a contract from Dynetics to supply its proven propulsion system, TJ150 engines, for integration with the latter’s Small Cruise Missile, known as Black Arrow.
Rolls-Royce’s Defense unit develops and delivers complex propulsion solutions for safety-critical applications in the air, at sea and on land. The company is set to power the U.S. Navy's MQ-25 unmanned refueling aircraft with its AE 3007N engine and thereby expand its leadership in unmanned propulsion.
KTOS’s Price Performance, Valuation and Estimates
Shares of KTOS have gained 186.8% in the past year compared with the industry’s 34.2% growth.
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The company shares are trading at a discount, with its forward 12-month Price/Sales being 7.60X compared with its industry’s average of 10.29X.
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The Zacks Consensus Estimate for KTOS’ 2026 earnings has improved over the past 60 days. The same for its 2025 earnings has remained constant over the past 60 days.
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KTOS stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Kratos Surges Ahead in Defense With Advanced Propulsion Initiatives

Palantir Technologies PLTR continues to stand out as one of the most compelling plays in the artificial intelligence sector, thanks to the explosive adoption of its Artificial Intelligence Platform (AIP). With enterprises seeking immediate, operational-ready AI tools, PLTR has positioned itself as a leader by delivering turnkey solutions that integrate seamlessly into existing workflows. This capability is a key differentiator, enabling organizations to deploy advanced AI systems without lengthy development cycles, a feature that fuels rapid adoption and customer loyalty.
A major driver of Palantir’s momentum is its expanding U.S. commercial business. In the most recent quarter, domestic commercial revenues surged at a staggering pace, reflecting the accelerating embrace of AI-driven decision-making among corporations. Beyond revenue growth, the increasing prevalence of multi-year, large-scale contracts underscores PLTR’s ability to secure clients for the long term. This blend of near-term revenue acceleration and long-term contract durability provides investors with greater visibility into the company’s growth trajectory.
With AI adoption still in the early innings across industries, Palantir is well-positioned to capture incremental demand as companies move beyond experimentation into scaled deployment.
For investors seeking outsized AI-driven upside, Palantir presents one of the clearest opportunities in the market. The combination of accelerating revenues, sticky customer relationships, and the unique value of AIP makes PLTR a name that could continue to deliver above-market returns. In the near term, this software-led momentum places Palantir firmly ahead of peers as the company cements its leadership role in enterprise AI.
PLTR’s Price Performance, Estimates
The stock has surged a whopping 109% year to date, significantly outperforming the industry’s 19% rally.
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From a valuation standpoint, PLTR trades at a forward price-to-sales ratio of 73.93, well above the industry’s 5.65. It carries a Value Score of F.
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The Zacks Consensus Estimate for PLTR’s 2025 earnings has increased 12% over the past 30 days.
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PLTR stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stable Defense Alternatives to Palantir
As PLTR’s valuation moves higher, Lockheed Martin LMT and RTX Corporation RTX offer more grounded defense exposure. Lockheed Martin, with its massive defense contracts, provides steady cash flow and less volatility than PLTR. Its forward price-to-sales ratio is just 1.4X. Lockheed Martin continues to benefit from global rearmament.
Similarly, RTX shines through missile systems. RTX’s defense backlog, like LMT's, underscores its stability. Its forward price-to-sales ratio is 2.42X.
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RTX Corporation

Price history and volume

Shares 360

Investment risk — high

Investment potential — medium

AI Factors

Iran vs US war

Iran vs US war

Ukraine War

Israel-Hamas Conflict

Boeing

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