RTX Corporation (NYSE:RTX) is among the 10 best American defense stocks to buy according to Wall Street analysts.
On February 5, Citigroup lifted its price target on the stock to $238 from $227, while reiterating a Buy rating, representing an upside of over 21% from Thursday’s close.
The adjustment comes a day after the company announced it had reached a seven-year agreement with the Department of War to increase the production and delivery of Tomahawks, AMRAAM missiles, along with other missiles and interceptors.
The deal comes amid soaring demand for precision munitions worldwide due to ongoing geopolitical conflicts, and Washington’s subsequent quest to replenish depleted stockpiles.
According to RTX Corporation’s (NYSE:RTX) press release, production of Tomahawk cruise missiles will increase to more than 1,000 units per annum, up from about 60 currently. The production capacity of AMRAAM air-to-air missiles is also planned to expand to at least 1,900 units.
In other news, the aerospace and defense giant reported strong results for the fourth quarter of fiscal 2025, led by increased sales of engines and rising demand for aircraft maintenance and repair services. Total sales grew 12% year-over-year to $24.2 billion, while adjusted EPS stood at $1.55, beating estimates by 8 cents and up 1% from the prior year.
The company also shared its outlook for 2026, with sales anticipated between $92 billion and $93 billion, with the midpoint above analysts’ forecasts. Adjusted EPS for the year is projected to be in the range of $6.60 to $6.80.
RTX Corporation (NYSE:RTX) is a giant in the global aerospace and defense industry, providing systems and services to commercial, military, and government clients. It operates through three main businesses: Collins Aerospace, Pratt & Whitney, and Raytheon.
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