While major tech companies suffered significant losses, the defense sector has demonstrated resilience, with Lockheed Martin, RTX Corporation, and Northrop Grumman seeing their stocks rise by 14% to 20% in the past month. This growth is fueled by strategic advancements, increased geopolitical tensions, and expanding international partnerships, making these companies stand out as strong investments in an uncertain market.
RTX Corporation, previously known as Raytheon Technologies, reported impressive first-quarter results, surpassing expectations on both revenue and earnings. Despite facing challenges with its GTF engine program, the company’s sales grew by 12%, led by strong performance in its Collins Aerospace and Pratt & Whitney segments. Adjusted earnings per share increased by 10%, while GAAP EPS surged by 32%. The company expects continued growth in the coming years, with organic sales growth in all segments and a positive earnings outlook. Analysts remain bullish on RTX stock, citing its strong backlog and demand in commercial and military end markets. Despite near-term pressures related to the GTF engine replacements, RTX remains a promising investment with a $125 price target for 2024.
RTX Corporation (RTX) reported solid financial results for the first quarter of fiscal year 2024, with adjusted net sales growing 12% year-over-year (Y/Y) to $19.3 billion, exceeding analyst expectations of $18.4 billion. The company’s operating segments, Collins Aerospace, Pratt & Whitney, and Raytheon, all contributed to the overall growth.
