RTX Secures a Contract to Aid Its Dual Band Radar Systems Program

RTX Corp. RTX recently clinched a modification contract for its Dual Band Radar (“DBR”) systems. The award has been provided by the Naval Sea Systems Command, Washington, D.C.The contract, valued at $93.9 million, is expected to be completed by September 2026. Per the terms of the deal, RTX will provide technical engineering follow-on requirements and spares to support the DBR systems installed aboard CVN78 and DDG1000 class ships. A major portion of the work related to this deal will be carried out in Tewksbury and Marlborough, MA.What’s Favoring RTX Stock?With the rapid rise of geopolitical tensions in recent years, governments worldwide have dramatically increased their military arsenals. As radars constitute a crucial component of this arsenal, rising defense spending has resulted in an escalation in demand for combat-proven radars.This must have been ushering in a solid order flow for radar manufacturing companies like RTX, whose extensive expertise in radar technology applies to a wide range of advanced radar systems for various applications, including air defense, missile defense, maritime surveillance and a few more. The latest contract win is a bright example of that.Notably, its DBR program is the first radar system of the U.S. Navy fleet, capable of operating simultaneously on two frequency ranges (S-band and X-band), coordinated by a single resource manager. DBR can operate 24x7 during extended missions with an operational availability of more than 95%. Additionally, the program requires no dedicated operator or manned display consoles. Growth Prospects for RTX StockNations are strengthening their defense capabilities amid rising geopolitical tensions. In this context, demand for an effective radar system, which boasts features of next-generation technology-based warfare capabilities, has been gaining momentum due to radars' growing importance in military surveillance.Per a Mordor Intelligence report, the global military radars market is anticipated to witness a CAGR of 5.3% during the 2023-2028 period. This exhibits strong growth prospects for RTX, which manufactures a variety of radars, ranging from integrated air and missile defense radars, ballistic missile and surveillance radars to air dominance radars. Its product portfolio consists of SPY 6, APG-63(V)3, APG-79 and APG-82(V)1 and GhostEye MRSuch, which tend to provide RTX with a competitive edge in the military radar system market.Peer OpportunitiesThe aforementioned market’s growth prospects should also benefit other radar-manufacturing defense majors, which have been discussed below.Northrop Grumman NOC: It has been at the forefront of active electronically scanned array radar innovations for more than 60 years. The AESA radars provide unparalleled battlespace situational awareness and air-to-air as well as air-to-ground superiority. A few of Northrop Grumman’s renowned radars are the AN/AAQ-24(V) Directional Infrared Countermeasure system, the AN/APG-77 AESA radar and the AN/APG-81 AESA fire control radar.Looking ahead, Northrop Grumman boasts a long-term (three-to-five years) earnings growth rate of 19.1%. The Zacks Consensus Estimate for NOC’s 2024 sales implies a 5.3% improvement from the 2023 reported figure.Lockheed Martin LMT: The company is pioneering the latest radar systems and technology. Its product portfolio consists of varied radars like Longbow FCR, AN/APY-9, IRST21 Sensor System, LANTIRN ER, Legion Pod and M-TADS/PNVS, which are some of its combat-proven products that enjoy solid demand in the global military radar market.Lockheed Martin’s long-term earnings growth rate is 4.5%. The Zacks Consensus Estimate for LMT’s 2024 sales implies a 5.4% improvement from the 2023 reported figure.BAE Systems BAESY is at the forefront of radar tracking technology, delivering systems that provide precision tracking data to range commanders with superior situational awareness and various target-tracking solutions. It delivered numerous state-of-the-art land-based fixed, transportable, mobile and shipborne precision Time Space and Position Information tracking radar systems to domestic and international customers.BAE Systems boasts a long-term earnings growth rate of 12.4%. The consensus estimate for BAESY’s 2024 sales implies a 37.7% improvement from the 2023 reported figure.Price MovementIn the past year, shares of RTX have risen 50.2% against the industry’s decline of 2.5%.Image Source: Zacks Investment ResearchZacks RankRTX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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 Lockheed Martin Corporation (LMT): Free Stock Analysis Report Northrop Grumman Corporation (NOC): Free Stock Analysis Report Bae Systems PLC (BAESY): Free Stock Analysis Report RTX Corporation (RTX): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks