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 демонстрирует смешанную фундаментальную картину. С одной стороны, мультипликаторы, такие как P/E и P/S, значительно превышают медианные значения по отрасли, что может указывать на переоцененность акций. С другой стороны, компания показывает впечатляющие абсолютные показатели, такие как выручка и чистая прибыль, которые значительно выше медианных значений по отрасли. Тем не менее, эффективность, измеряемая ROE, ROA и ROI, существенно ниже медианных значений, что указывает на проблемы с рентабельностью. Долговая нагрузка также вызывает опасения, так как коэффициент долга к капиталу выше медианы. Дивидендная доходность снижается, что может быть негативным сигналом для инвесторов. В то же время, рост выручки и чистой прибыли указывает на позитивные тенденции, однако, недостаточная рентабельность и высокая оценка акций могут ограничивать дальнейший рост цен. Инвесторы должны быть осторожны, учитывая эти факторы, при принятии решений о вложениях в RTX Corporation.

RTX Corporation

The conflict in Iran has led to high munitions usage by the U.S., more so than initially expected.
So much so that defense contractors are being summoned to increase the production of both missiles and defense systems, specifically Lockheed Martin LMT and RTX Corporation RTX.
With the White House hosting executives from both companies last Friday, Lockheed and RTX have continued to incur lucrative contracts. Leading to the meeting, has been the Pentagon’s concerns that munitions stockpiles are getting low, as the lead time to produce the advanced weaponry that is needed can often take years.
Reassuringly, to the interest of the U.S. government and investors amid such high demand, Lockheed and RTX are making strategic moves to speed up their production capabilities.
To that point, there has been a somewhat dire need for the THAAD anti-ballistic defense system, which is produced by Lockheed, and the Tomahawk, a long-range cruise missile that is made by RTX.
Both companies continue to receive new contracts for the F-35 fighter jet as well, which Lockheed builds, while RTX provides the key components.
Timeline: LMT & RTX’s Strong Price Performance
The first U.S. strike on Iran occurred in June of 2025, when the Air Force and Navy attacked three Iranian nuclear facilities under the code name Operation Midnight Hammer. Leading up to what has now turned into an ongoing war-themed Operation Epic Fury, Lockheed and RTX stock have risen 40% and 57% in the last year, respectively.
Continuing to outperform the broader market and the Zacks Aerospace-Defense Industry, RTX has now soared +150% in the last five years, with LMT spiking more than 70%. These reliable returns come as Lockheed and RTX weapons have been used extensively in the Ukraine-Russia war, which went into full-scale in February of 2022.
Image Source: Zacks Investment Research
Lockheed & RTX's Steady Expansion
Lockheed’s annual sales are expected to increase 5% this year and are projected to rise another 4% in fiscal 2027 to $82.34 billion.
Taking advantage of its steady top line expansion, Lockheed’s annual earnings are currently slated to spike 29% in FY26 to $29.87 per share from EPS of $23.12 last year. Better still, FY27 EPS is projected to increase another 8% to a whopping $32.26.
Image Source: Zacks Investment Research
Pivoting to RTX, FY26 sales are expected to be up 5%, with its top line projected to stretch another 7% next year to over $100 billion.
On the bottom line, FY26 EPS is slated to grow 8%, with RTX’s annual earnings forecasted to jump another 10% in FY27 to $7.50 per share.
Image Source: Zacks Investment Research
Increased Production: Backlog & CapEx
Equipping the F-35 fighter jet with the latest cutting-edge tech, including AI-assisted targeting suggestions, Lockheed has secured two new F-35-related contracts. Being part of the F-35 production ecosystem, RTX received modification contracts to bolster the engines, along with new modernization deals to upgrade its Tomahawk missiles.
Notably, Lockheed has also signed an agreement with the Pentagon to quadruple production of its THAAD missile interceptors, after recently signing a deal to increase the output of its Patriot air-defense system (PAC-3), which has been heavily used by Ukraine.
It's noteworthy that RTX is a direct beneficiary of increased THAAD production as well, as it supplies key radar components that play a crucial role in the defense system’s overall performance. THAAD uses these radars and interceptor missiles to shoot down short, medium, and long-range missiles. As of now, the U.S. has nine THAAD systems positioned around the world, with the missiles used in the system expected to go from a production rate of 96 per year to an annual rate of 400.
To do so, Lockheed plans to open a new “munitions acceleration center” in Camden, Arkansas, as part of a multi-billion-dollar investment to expand PAC-3 production as well.
Lockheed has not provided capital expenditures (CapEx) guidance for FY26, but a relatively sharp increase should be expected. That said, Lockheed’s trailing 12-month (TTM) CapEx is down 2% year over year at $1.64 billion. Going into 2026, Lockheed’s backlog had increased 8% YoY to a record $194 billion, justifying the increase in production and CapEx.
Image Source: Zacks Investment Research
As for RTX, its backlog had increased 23% YoY to a peak of $268 billion, reflecting strong demand across both its commercial and defense segments.
On a TTM basis, RTX’s CapEx is slightly up at just over $2.62 billion. RTX does expect its investments to remain elevated relative to the past to support missile production, radar systems, and aerospace manufacturing capacity.
Image Source: Zacks Investment Research
Bottom Line
Lockheed Martin and RTX Corporation are seeing unusually strong, record-level demand right now, driven by global conflicts, massive U.S. defense spending, and historic backlogs.
This makes it a compelling moment for long-term investors, as these top aerospace and defense stocks are sitting on multi-year revenue visibility, expanding production capacity, and benefiting from geopolitical tensions that are unlikely to ease soon.
Zacks Names #1 Semiconductor Stock
This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.
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Lockheed Martin and RTX Stock: Rising Pillars of Modern Defense

RTX (RTX) ended the recent trading session at $203.04, demonstrating a -2.04% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 1.52% for the day. At the same time, the Dow lost 1.56%, and the tech-heavy Nasdaq lost 1.78%.
Heading into today, shares of the an aerospace and defense company had gained 5.47% over the past month, outpacing the Aerospace sector's gain of 2.64% and the S&P 500's loss of 2.25%.
The investment community will be paying close attention to the earnings performance of RTX in its upcoming release. The company's upcoming EPS is projected at $1.51, signifying a 2.72% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $21.42 billion, indicating a 5.48% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.81 per share and revenue of $93.36 billion, which would represent changes of +8.27% and +5.37%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for RTX. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. RTX currently has a Zacks Rank of #3 (Hold).
Investors should also note RTX's current valuation metrics, including its Forward P/E ratio of 30.44. Its industry sports an average Forward P/E of 24.09, so one might conclude that RTX is trading at a premium comparatively.
Investors should also note that RTX has a PEG ratio of 3 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Aerospace - Defense stocks are, on average, holding a PEG ratio of 2.07 based on yesterday's closing prices.
The Aerospace - Defense industry is part of the Aerospace sector. This industry, currently bearing a Zacks Industry Rank of 81, finds itself in the top 34% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Zacks Names #1 Semiconductor Stock
This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.
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RTX Corporation (RTX) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Here's Why RTX (RTX) Fell More Than Broader Market

Howmet Aerospace Inc.’s HWM investors have been experiencing some short-term gains from the stock. The company’s shares have surged 33% in the past six months, outpacing the industry and the S&P 500, which have returned 8.8% and 3.3%, respectively. The company has also outshone its peers like Textron Inc. TXT and RTX Corporation RTX , which have returned 13.4% and 30.9%, respectively, over the same time frame.
HWM Outperforms the Industry, S&P 500 & Peers
Image Source: Zacks Investment Research
Closing at $251.65 in the last trading session, the stock is trading close to its 52-week high of $267.31 and significantly higher than its 52-week low of $105.04. It is trading above both its 50-day and 200-day moving averages, indicating solid upward momentum and confidence in the company's long-term prospects.
HWM Stock’s 50-Day & 200-Day Moving Averages
Image Source: Zacks Investment Research
Let’s take a look at HWM’s fundamentals to better analyze how to play the stock.
What’s Behind HWM Stock’s Momentum?
Strong momentum in Howmet Aerospace’s commercial aerospace market continues to drive its overall growth. Rising global air passenger traffic has boosted demand for wide-body aircraft, resulting in higher OEM spending and steadily increasing demand for the aircraft parts and products supplied by the company.
Revenues from the commercial aerospace market increased 13% year over year in the fourth quarter of 2025, which constituted 53% of its business. Also, in the first, second and third quarters, revenues from the market increased 9%, 8% and 15% year over year, respectively. The sustained strength was attributed to new, more fuel-efficient aircraft with reduced carbon emissions and increased spare demand for engines. The Boeing Company BA is also anticipated to witness a gradual production recovery, particularly in the Boeing 737 MAX aircraft, which is expected to boost demand for HWM’s products in the market.
The defense side of the aerospace market has also been witnessing positive momentum driven by steady government support. The company has been witnessing robust orders for engine spares for the F-35 program and spares for legacy fighters like the F-15 and the F-16. In the fourth quarter, revenues from the defense aerospace market surged 20% year over year, constituting 17% of the company’s revenues. Also, in the first, second and third quarters, revenues from this market increased 19%, 21% and 24% year over year, respectively.
The company’s measures to reward shareholders are encouraging. In 2025, HWM paid dividends of $181 million and repurchased shares worth $700 million. In August 2025, the company hiked its dividend by 20% to 12 cents per share (annually: 48 cents), marking its second dividend hike in 2025. Also, in July 2024, its board approved an increase in the share repurchase program by $2 billion to $2.487 billion of its common stock. As of Feb. 6, 2025, HWM’s total share repurchase authorization available was $1.35 billion.
Howmet Aerospace operates in the aerospace and defense markets, which include major industry players like Textron and RTX Corp.
HWM’s Estimate Revisions
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HWM’s bottom line for 2026 has increased 3.2% in the past 60 days.
Valuation
Image Source: Zacks Investment Research
Howmet Aerospace is trading at a forward 12-month price-to-earnings (P/E) ratio of 53.20X, much higher than the industry average of 33.05X. This elevated valuation could make the stock vulnerable to further pullbacks if market sentiment sours.
In comparison with HWM’s valuation, its peers, Textron and RTX Corp., are trading cheaper. TXT and RTX are currently trading at 29.85X and 12.58X, respectively.
Conclusion
Strength across both the commercial and defense aerospace markets, driven by solid aircraft build rates, strong engine spare demand and elevated defense spending, positions Howmet Aerospace well for sustained growth in the coming quarters. Supported by a healthy liquidity position, the company’s shareholder-friendly initiatives further enhance its investment appeal.
Despite trading at a premium valuation, favorable analyst sentiment and strong growth prospects suggest that investors may consider this Zacks Rank #2 (Buy) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Names #1 Semiconductor Stock
This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.
See This Stock Now for Free >>
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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Should You Buy Howmet Aerospace After a 33% Rally in 6 Months?

Key Points
Relatively low engine retirements are extending the life of the aircraft engines that the company services.
Surging demand for power for data centers is strengthening the business case for its new business converting aircraft engines into power turbines.
FTAI Aviation (NASDAQ: FTAI) shares rose by 12.3% in February, according to data from S&P Global Market Intelligence. The move continues the stock's superb performance over the last year (up 178%) and in 2026 (up 38%) at the time of writing. That kind of performance doesn't come without reason, or in this case, reasons. Simply put, FTAI's core aviation market is thriving, and its exciting new business, FTAI Power, is preparing for a bright future servicing AI data center needs.
FTAI prepares for a big year ahead
The company is best known for servicing narrow-body aircraft engines from Boeing and Airbus. While aircraft engine manufacturers, such as GE Aerospace and RTX's Pratt & Whitney, sell engines with lucrative long-term service agreements (LTSA) attached, these engines can last more than 40 years, and there's ample opportunity for FTAI to offer cost-effective servicing after the LTSA expires.
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It's been a great market to be in over the last few years, as engine manufacturers struggle to ramp up production, which means older engines (such as the CFM56 and V2500) are run more.
Indeed, FTAI CEO Joseph Adams outlined on the recentearnings callthat "The long-term outlook for the aftermarket on these platforms continues to strengthen as airlines increasingly opt to extend the life of their existing fleets rather than retiring aircraft for the newest technology." Moreover, he expects total industry maintenance spending to grow to $25 billion in 2026 from $22 billion as engine retirements "remain at historically low levels" amid " heavier maintenance overhauls that signal longer economic useful life for these engine types."
That's great news for FTAI's core market. There was more good news for FTAI investors earlier in the year when it signed a multi-year agreement with CFM International (a joint venture between GE Aerospace and Safran) to provide component and service support for CFM56 engines (used on the legacy Boeing 737 and Airbus A320 family of aircraft). While it sounds counterintuitive to do a deal with a servicing rival, it benefits GE as it can ensure CFM56 engines are serviced (lengthening their life), and it supplies FTAI with parts while focusing on servicing its newer LEAP engines as part of its LTSAs.
FTAI Power powers on
The market is also very excited about FTAI Power, the company's brand-new business dedicated to converting CFM56 engines into power turbines (aeroderivatives) for data centers. Management recently confirmed it was building inventory, retrofitting its factories, and building a supply chain in anticipation of delivering its first FTAI Power aeroderivative in the fourth quarter of 2026.
What it means to investors
If you bought the stock in anticipation of ongoing strength in servicing commercial aviation engines and the potential for FTAI Power with data centers, then you would probably be pleased by the company's earnings report in February and the ongoing development of the business.
FTAI's end markets are in excellent shape, and momentum is building in 2026; as long as it continues, investors will look favorably on the stock.
Should you buy stock in Ftai Aviation right now?
Before you buy stock in Ftai Aviation, consider this:
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Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Boeing, GE Aerospace, RTX, and Safran. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Here's Why Booming Aerospace and Data Center Markets Are Powering This Stock Higher in 2026

Key Points
Generac is capitalizing on strong demand for backup power solutions for data centers.
Quanta Services' power infrastructure solutions benefit from rising electricity demand and power grid upgrades.
RTX is a leader in aerospace and defense with a diverse and steady revenue stream.
Industrial companies build the backbone of modern energy infrastructure, energy resilience, engineering and construction, and aerospace and defense technologies. These companies are crucial to the economy and enjoy steady demand, providing them with stability and long-term growth potential. If this sounds appealing to you, here are three excellent industrial stocks to buy in March.
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Generac's backup power solutions are seeing strong demand from data centers
Generac (NYSE: GNRC) manufactures backup power generation and energy technology solutions, and is best known for its dominant position in the home standby generator market. It boasts a massive global network of 9,400 independent dealers along with thousands of retail and wholesale partners. In recent years, the company has expanded into a broader energy ecosystem, including its solar energy storage system, PWRcell2, and other grid services.
The company is capitalizing on the rapid adoption of artificial intelligence and the massive capital investments being made by hyperscalers and data center operators. To meet AI's growing hunger for power, the company has introduced a line of large MW diesel generators. In addition, in February, the company signed an agreement to acquire Enercon Engineering, giving it an expert in specialized manufacturing for custom industrial enclosures, switchgear, and generator packaging to meet surging demand for data center backup power.
Its backlog for these large data center generators has grown to $400 million, with most expected to ship this year. The company projects that the total addressable market for large MW diesel backup generators could reach $15 billion annually. Looking ahead, management projects mid-teens net sales growth and expects adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin to expand. In its Commercial and Industrial (C&I) segment, the company foresees a 30% surge driven by revenue from data center customers.
Quanta Services' power solutions are projected for strong growth
Quanta Services (NYSE: PWR) provides infrastructure solutions for electric power, renewable energy, and underground utility sectors. It generates revenue through large-scale engineering, procurement, and construction (EPC) contracts and recurring revenue from long-term maintenance agreements across a range of industries.
The company is another beneficiary of surging electricity demand, driven by data centers, domestic manufacturing reshoring, and the overall electrification of the power grid. Because modern artificial intelligence training and inference require significant electricity, there is a need for expanded transmission and distribution infrastructure to reliably transport power. This is where Quanta comes in, providing turnkey solutions that cover everything from high-voltage transmission interconnections to low-voltage electrical systems within data center facilities.
In recent years, the company has acquired businesses such as Cupertino Electric and Dynamic Systems, expanding its capabilities to serve large load facilities and data centers. The company's backlog has grown 27% year over year to $44 billion. Management issued revenue guidance of $33.5 billion at the midpoint for this year, along with adjusted earnings per share guidance of $13, representing 21% year-over-year growth. Its strong growth has Goldman Sachs analyst Ati Modak projecting robust EPS growth of 17% to 18% annually through 2030.
RTX is a top aerospace and defense company with steady growth
RTX (NYSE: RTX) is a global aerospace and defense company that provides avionics and aerostructures, aircraft engines, and missile defense products. The company supplies critical hardware and services to commercial airlines and government defense agencies. Its revenue is well diversified across markets and customer segments, with 48% from the aerospace market and 52% from defense and government customers.
The company has a high-margin aftermarket services business that includes spare parts, overhauls, repairs, and fleet management, which supports growth and profitability. Because aircraft engines and components have lifespans that span decades, this provides the company with a steady stream of recurring revenue over a long time horizon. Roughly 50% of RTX's backlog is related to long-term aerospace maintenance contracts at Pratt & Whitney.
RTX is seeing "a heightened need for munitions and integrated air and missile defense as the U.S. and partner countries work to replenish inventories, modernize existing systems and invest in new capabilities," according to CEO Christopher Calio. As a result, its backlog has grown to $268 billion, and it is guiding for adjusted EPS of $6.70 at the midpoint, representing 6.5% growth year over year. For investors seeking stable growth, RTX is another excellent industrial stock to buy today.
Should you buy stock in Generac right now?
Before you buy stock in Generac, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Generac wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $530,233!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,119,682!*
Now, it’s worth noting Stock Advisor’s total average return is 955% — a market-crushing outperformance compared to 191% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of March 10, 2026.
Courtney Carlsen has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group, Quanta Services, and RTX. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The Best 3 Industrial Stocks to Buy in March

AeroVironment, Inc. AVAV is strengthening its role in defense technology through its counter-uncrewed aircraft systems (C-UAS). These solutions are designed to detect, track and defeat hostile drones that may threaten military bases, critical infrastructure or troops in the field. As drones become more common in modern conflicts, the need to defend against them has become a key priority for defense forces worldwide.
A central element of AeroVironment’s counter-drone portfolio is the Titan family of radio-frequency-based C-UAS systems. These solutions help identify and neutralize small hostile drones while providing operators with real-time situational awareness. Some variants can be deployed within minutes and are designed so that even non-specialist operators can monitor drone activity and respond quickly to potential threats. This flexibility makes them suitable for fast-changing battlefield conditions.
The company is also advancing its counter-drone capabilities through new technologies and upgraded systems. AeroVironment has introduced lighter and more capable solutions that improve detection range and response speed against small unmanned aircraft. It is developing kinetic interceptor systems designed to engage larger aerial threats, expanding its ability to address different types of drone risks.
Demand for counter-drone technologies is rising as unmanned aircraft are increasingly used for surveillance and attack missions. To address this trend, AeroVironment continues to invest in sensing technologies, artificial intelligence and integrated defense platforms to support the development of next-generation counter-drone systems.
Increasing Drone Threats Expand Counter-UAS Opportunities
The rising use of drones in modern warfare is driving demand for technologies that can detect, track and defeat hostile unmanned aircraft across military operations. Other defense companies advancing similar counter-drone capabilities are discussed below.
RTX Corporation RTX develops advanced air defense and electronic warfare systems used to detect and counter aerial threats, including unmanned aircraft.
Northrop Grumman Corporation NOC develops advanced radar, electronic warfare and integrated air defense systems that help detect, track and counter unmanned aerial threats across military operations.
Earnings Estimates for AVAV Stock
The Zacks Consensus Estimate for fiscal 2026 and fiscal 2027 earnings per share suggests a year-over-year decline of 1.22% and growth of 37.04%, respectively.
Image Source: Zacks Investment Research
AVAV Stock Trading at a Discount
AeroVironment is trading at a discount relative to the industry, with a forward 12-month price-to-sales of 5.06X compared with the industry average of 12.58X.
Image Source: Zacks Investment Research
AVAV Stock Price Performance
In the past year, AVAV shares have surged 82.6% compared with the industry’s 48.8% growth.
Image Source: Zacks Investment Research
AVAV’s Zacks Rank
AeroVironment currently has a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
See
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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.

How Is AeroVironment Expanding Its Counter-Drone Defense Capabilities?

The Boeing Company’s BA shares have rallied 13.2% in three months compared with the Zacks Aerospace-Defense industry’s growth of 12.3%. The company is seeing growth across its commercial, defense and services businesses, driven by robust aircraft demand, significant contract awards and a solid backlog that underpins sustained revenue growth.
Image Source: Zacks Investment Research
Other defense stocks, such as RTX Corporation RTX and General Dynamics GD, have also gained during the same period. Shares of RTX and General Dynamics have risen 19.2% and 5.8%, respectively, during the same time frame. RTX continues to receive ample orders for its wide range of combat-proven defense products from the Pentagon and its foreign allies. General Dynamics benefits from a solid number of award wins and a strong global presence.
Considering Boeing’s outperformance compared with its industry, investors might be left wondering if this is a good time to add the stock to their portfolio. Let's examine the factors that contributed to the share price gain and assess the stock's investment prospects to make an informed decision.
Factors in Favor of BA
Boeing remains one of the largest aircraft manufacturers in the United States in terms of revenues, orders and deliveries, particularly in the commercial aerospace industry. Thanks to the steadily growing demand trend in commercial aerospace, the company, being a prominent jet manufacturer, has been witnessing solid delivery and order activities lately.
The company’s Boeing Commercial Airplanes segment registered 181% year-over-year growth in its delivery count for the fourth quarter of 2025, which resulted in a 139% surge in this unit’s revenues.
The outlook for the aerospace giant’s defense and space business also remains optimistic. In particular, the current U.S. government’s inclination toward strengthening the nation’s defense and space systems should act as a growth catalyst for
Boeing.
During the fourth quarter of 2025, the Boeing Defense, Space & Security unit booked $15 billion in orders, including contracts for 15 KC-46A tankers from the U.S. Air Force and 96 Apaches from Poland, which resulted in a solid backlog amount of $85 billion for this segment as of Dec. 31, 2025. Such solid contract wins and subsequent backlog count should continue to bolster the BDS unit’s revenues, which registered solid year-over-year growth of 37% in the fourth quarter.
In February 2026, Boeing and Sun PhuQuoc Airways announced that the new Vietnam-based carrier had ordered up to 40 787 Dreamliner jets to serve as the backbone of its widebody fleet. The deal strengthens Boeing’s presence in Southeast Asia, one of the fastest-growing aviation markets, while potentially opening the door for additional aircraft orders as the airline expands its fleet.
Challenges Faced by BA
While Boeing presents strong growth potential, it also faces several key challenges that investors should weigh carefully. Although global air travel demand continues to recover and expand, the aviation industry remains constrained by persistent supply-chain disruptions, including shortages of engines, castings and other critical components.
These bottlenecks have delayed aircraft deliveries and increased production costs, limiting manufacturers’ ability to fully capitalize on rising demand. During 2025, aircraft order cancellations totaled $11.09 billion, mainly for 777X, 737, and 787 models, which impacted the revenue potential of the Boeing Commercial Airplanes segment.
BA Stock’s Estimates
The Zacks Consensus Estimate for 2026 earnings per share (EPS) has decreased 40% in the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for RTX’s 2026 EPS has increased 1.49% over the past 60 days. RTX’s long-term (three to five years) earnings growth rate is 10.16%. The Zacks Consensus Estimate for General Dynamics’ 2026 EPS has decreased 3.1% in the past 60 days. GD’s long-term earnings growth rate is 10.3%.
BA’s Earnings Surprise History
The company beat on earnings in two of the trailing four quarters and missed in the other two, delivering an average negative surprise of 80.4%.
Image Source: Zacks Investment Research
BA Stock’s Liquidity
The company’s current ratio of 1.19 is better than the industry’s average of 1.15. A current ratio greater than one indicates that the company has enough short-term assets to cover all short-term liabilities, if necessary.
Image Source: Zacks Investment Research
BA Stock Trades at a Discount
In terms of valuation, Boeing’s forward 12-month price-to-sales (P/S) is 1.83X, a discount to the industry’s average of 2.77X. This suggests that investors will be paying a lower price than the company's expected sales growth compared with that of its peer group.
Image Source: Zacks Investment Research
What Should an Investor do Now?
The company has been experiencing solid order and delivery momentum, which has boosted the performance of its commercial airplanes segment. Boeing’s defense and space business also maintains a positive outlook, supported by the U.S. government’s focus on strengthening national defense and space capabilities, which continues to drive new contract awards and a robust backlog.
However, considering its negative earnings growth projection, new investors should wait and look for a better entry point. Those who already have this Zacks Rank #3 (Hold) stock in their portfolio may continue to retain it, given the company’s strong liquidity position. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
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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.

Boeing Stock Rises 13.2% in 3 Months: Is There More Room for Growth?

RTX Corporation RTX stock has risen 62.5% in the past year, outperforming both the Zacks Aerospace-Defense industry’s growth of 36.9% and the broader Zacks Aerospace sector’s gain of 40%. It also came above the S&P 500’s return of 25.2% in the same time frame.
Image Source: Zacks Investment Research
Other industry players, such as Huntington Ingalls Industries HII and General Dynamics GD, have also delivered a similar stellar performance in the past year. Shares of HII and GD have risen 120.3% and 37%, respectively, in the said period.
RTX’s strong recent performance may attract investors looking to buy the stock. However, it is important to evaluate whether the company’s fundamentals are strong enough to sustain long-term growth or if the recent rally could prove short-lived. A closer look at RTX’s growth prospects and potential risks can help investors make a more informed decision.
Tailwinds for RTX
RTX’s recent share strength is supported by several business developments across its defense and aerospace operations.
In February 2026, RTX’s BBN Technologies secured a contract from the Defense Advanced Research Projects Agency (DARPA) under the X-ray Extreme range Non imaging Analysis program. The initiative aims to develop advanced X-ray tools capable of reconstructing the hidden geometry of man-made objects from distances approaching a kilometer. This technology is expected to improve situational awareness for military personnel, particularly in scenarios where direct access to an area is unsafe or restricted.
RTX also received a production contract through its Raytheon ELCAN optical systems business to supply a customized version of its Specter DR 1-4x weapon sight to the German Armed Forces. The system is tailored to Germany’s soldier modernization program and includes an integrated reflex sight designed to support both close-range and mid-range engagements.
The company also announced a $200 million investment to expand its operations in Columbus, GA. The expansion includes the installation of a new isothermal forging press that is expected to increase the production of key engine components by around 30%. The investment is intended to support growing demand across engine programs such as the GTF and F135.
These developments reflect steady demand for RTX’s advanced defense technologies and continued investment in aerospace manufacturing capabilities, supporting its long-term growth prospects.
Estimates for RTX’s 2026 Sales and Earnings
The Zacks Consensus Estimate for RTX’s 2026 sales implies year-over-year growth of 5.4%. The consensus estimate for its 2026 earnings indicates a year-over-year increase of 8.3%.
Image Source: Zacks Investment Research
The upward revision in its 2026 earnings over the past 60 days suggests investors’ increasing confidence in this stock’s earnings generation capabilities.
Image Source: Zacks Investment Research
RTX’s Valuation
In terms of valuation, RTX’s forward 12-month price-to-earnings (P/E) is 30.00X, a discount to the industry average of 33.28X. This suggests that investors will be paying a lower price than the company's expected earnings growth compared with its industry average.
Image Source: Zacks Investment Research
Huntington and General Dynamics are trading at a discount in comparison with RTX. HII’s forward 12-month price-to-earnings is 24.24X, while GD’s forward 12-month price-to-earnings is 21.73X.
Liquidity Position of RTX
RTX has a current ratio of 1.03. The ratio, being more than one, indicates that RTX possesses sufficient capital to pay off its short-term debt obligations.
Risks to Note Before Choosing RTX
Executive orders issued by the United States in February 2025 introduced tariffs on imports, which prompted retaliatory actions from China, the European Union and Canada. These rising trade tensions could disrupt global business activity and may affect defense companies such as RTX, Huntington and General Dynamics, which have significant international exposure.
Final Call
RTX’s attractive valuation and improving earnings outlook suggest that the stock is reasonably valued and offers steady growth potential. However, ongoing global trade uncertainties could create near-term risks and affect its performance. Current investors may choose to hold the stock, while new investors may wait for more clarity before taking a position.
RTX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
See
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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.

RTX Outperforms Industry in the Past Year: Should You Buy?

(RTTNews) - Tuesday, RTX Corp. (RTX) announced that its subsidiary Pratt & Whitney has secured a follow-on contract from Leidos Dynetics to supply TJ150 engines for their AGM-190A small cruise missile.
The TJ150 is a compact, high-performance turbojet engine, which is designed to power a variety of autonomous systems and weapons for domestic and international customers.
"Meeting today's mission demands requires speed and reliable performance, and the TJ150 engine delivers on both," said Jessica Villardi, vice president of Fighter and Mobility Programs at Pratt & Whitney. "The engine's performance and availability make it an ideal fit for effectors, as it provides consistent thrust and supports seamless vehicle integration."
In the pre-market hours, RTX is trading at $206.52, down 0.83 percent on the New York Stock Exchange.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

RTX's Pratt & Whitney Bags Follow-On TJ150 Engines Supply Contract From Leidos Dynetics

Lockheed Martin’s LMT shares have risen 43.6% in the past three months, outperforming the Zacks Aerospace-Defense industry’s growth of 12.3%. Lockheed Martin is one of the largest U.S. defense contractors with a platform-centric focus that guarantees a steady inflow of follow-on orders from a leveraged presence in the Army, Air Force, Navy and IT programs.
Image Source: Zacks Investment Research
Along with LMT, other defense stocks like RTX Corporation RTX and Northrop Grumman NOC have also gained 20.1% and 36.2%, respectively, during the same period. RTX continues to receive ample orders for its wide range of combat-proven defense products from the Pentagon and its foreign allies. Northrop Grumman benefits from favorable budgetary attributes and a solid international presence.
Considering Lockheed Martin’s outperformance compared with its industry, investors might be left wondering if this is a good time to add the stock to their portfolio. Let's examine the factors that contributed to the share price gain and assess the stock's investment prospects to make an informed decision.
Advantageous Factors for LMT Stock
Lockheed Martin’s broad product offerings allow it to secure major defense contracts, which, in turn, boosts its backlog count. The company was successful in clinching several notable deals in the fourth quarter of 2025. These include a contract for 18 space vehicles for its Tranche 3 Tracking Layer (TRKT3) constellation, with a potential value of more than $1 billion. It also clinched a $233 million contract to deliver IRST21 Block II systems and initial spares to the U.S. Navy and Air National Guard.
The F-35 program continues to be a key growth program for the company’s Aeronautics business segment. This program generated approximately 27% of Lockheed Martin’s total consolidated net sales in 2025.
The company continues to witness interest in the Aegis Ballistic Missile Defense System (Aegis) from international customers, such as Japan, Spain, the Republic of Korea and Australia. Lockheed Martin also has ongoing combat systems programs associated with different classes of surface combatant ships for customers in Canada, Chile and New Zealand.
Lockheed Martin stands to benefit from ramping up production of the upgraded S-92A+ helicopter through its subsidiary Sikorsky, as the move should drive higher aircraft sales and strengthen its presence in the global heavy-lift helicopter market. Increased production enables the company to meet new orders, including demand from the government.
Challenges Faced by LMT Stock
Lockheed Martin experienced performance issues on a classified fixed-price incentive fee contract in its Aeronautics business segment and periodically recognized reach-forward losses. During 2025, the company recorded losses of $950 million on this program. It also reported losses of $570 million in the Canadian Maritime Helicopter Program, $95 million in the Turkish Utility Helicopter Program at its RMS business segment and $140 million of unfavorable profit adjustments on C-130 programs at its Aeronautics business segment. The company may incur additional losses in future periods if it experiences further performance issues, increases in scope or cost growth, which could be material to its financial results.
Estimates for LMT Stock
The Zacks Consensus Estimate for 2026 earnings per share (EPS) has risen 1.12% over the past 60 days. LMT’s long-term (three to five years) earnings growth rate is 18.57%.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for RTX’s 2026 EPS has increased 1.49% over the past 60 days. NOC’s long-term earnings growth rate is 10.16%. The Zacks Consensus Estimate for Northrop Grumman’s 2026 EPS has declined 2.05% over the past 60 days. NOC’s long-term earnings growth rate is 4.8%.
LMT’s Earnings Surprise History
The company beat on earnings in each of the trailing four quarters, delivering an average surprise of 14.01%.
Image Source: Zacks Investment Research
LMT’s Debt Position
Currently, the company’s total debt to capital is 76.35%, higher than the industry’s average of 51.29%.
Image Source: Zacks Investment Research
LMT Stock Trades at a Discount
In terms of valuation, LMT’s forward 12-month price-to-sales (P/S) is 1.96X, a discount to the industry’s average of 2.78X. This suggests that investors will be paying a lower price than the company's expected sales growth compared with its peer group.
Image Source: Zacks Investment Research
What Should an Investor Do Now?
Lockheed Martin benefits from its broad portfolio of advanced defense systems, which helps it secure major contracts and maintain a strong order backlog. Key programs across space, aeronautics and naval defense continue to support growth. Additionally, increased production of the upgraded S-92A+ helicopter through its Sikorsky unit is expected to boost aircraft sales and strengthen its presence in the global heavy-lift helicopter market.
However, considering its financial pressures and higher debt levels, new investors should wait and look for a better entry point. Those who already have this Zacks Rank #3 (Hold) stock in their portfolio may continue to retain it, considering the company’s impressive earnings growth projection.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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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.