Raytheon Stock (RTX) Pounds Higher on $1.1B U.S. Navy Missiles Deal

Shares in U.S. defense group Raytheon (RTX) shot higher today after sealing a $1.1 billion contract from the U.S. Navy to produce more short-range missiles.

SIDEWINDER Success

The AIM-9X Block II missiles, known as SIDEWINDER, can be used in air-to-air combat or launched from a surface at an enemy target.

This is the largest contract awarded for the program and will increase production to 2,500 missiles per year. A U.S. Navy-led joint program with the U.S. Air Force, AIM-9X is used by over 30 overseas allies and partners.

“This award represents a historic milestone for the AIM-9X program, further emphasizing its importance to the U.S. and partnered nations,” said Barbara Borgonovi, president of Naval Power at Raytheon.

Demand for these types of missiles and other armaments is growing given current geopolitical conflicts and tensions in Ukraine, the Middle East, and potentially China and Taiwan. European demand is also rising as President Trump urges governments to increase their financial contributions to the Nato alliance.

Defense Drive

In the U.S., Trump last month requested a national defense budget of $892.6 billion for 2026 from Congress, matching the 2025 budget. The focus is on rebuilding the military, re-establishing deterrence, and promoting national security.

Raytheon’s radar technology is also being talked up as being the backbone of Trump’s Golden Dome vision. RTX’s interceptors and tracking systems are critical for the kind of “see everything, hit anything” satellite shield Trump is envisioning to protect against enemy missiles.

Buoyed by this demand, Raytheon stock has rocketed 21% so far this year.

Is RTX a Good Stock to Buy Now?

On TipRanks, RTX has a Moderate Buy consensus based on 12 Buy and 5 Hold ratings. Its highest price target is $160. RTX stock’s consensus price target is $138.67 implying an 0.46% upside.

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