Raytheon Technologies Corp. RTX recently clinched a $320.7 million contract for the production of a Stinger missile. Work related to the deal is scheduled to be completed by Jun 30, 2026. The contract has been awarded by the U.S. Army Contracting Command, Redstone Arsenal, AL.
Importance of Raytheon’s Stinger Missile
The Stinger missile is a lightweight, self-contained air defense system that can be rapidly deployed by ground troops. This combat-proven weapon has more than 270 fixed- and rotary-wing intercepts to its credit. In 2019, the U.S. Army began retrofitting its Stinger missiles with proximity fuzes, which allow missiles to destroy unmanned airborne systems with direct hits or by detonating near them.
The Stinger missile is effective against helicopters, unmanned aerial vehicles, and observation and transport aircraft. The missile's importance is acknowledged on a global scale, as it is deployed in 19 nations and with all four U.S. military services.
Budget Aiding Growth Prospects
The U.S. fiscal 2022 defense budget proposal provisioned $20.4 billion for investments in missile defense. This should enable Raytheon Technologies to clinch more contracts like the latest one, related to other missile defense systems and associated services, considering the company’s proven expertise in varied missile systems.
Other Missile Makers Poised to Benefit
Considering the geopolitical background, which is favorable for the missile market growth on a whole, and the fact that the United States is the largest military weapon exporter globally, other prominent missile makers in the nation, such as Northrop Grumman NOC, General Dynamics GD and Boeing BA, are poised to benefit as well. These defense giants are also expected to benefit from the favorable budget provision.
Northrop Grumman’s missile defense program includes AGM-88E advanced anti-radiation guided missiles (AARGM), the Ground Based Strategic Deterrent (GBSD) weapon system and rocket propulsion systems.
General Dynamics’ Ordnance and Tactical Systems are the system integrators of the 2.75-inch Hydra-70 family of rockets. It also produces composite rocket motor cases, and launch tubes for tactical and strategic missiles.
Boeing’s Integrated Air & Missile Defense portfolio includes Arrow 3, which offers regional missile defense capabilities to enable an effective response to short and medium-range ballistic missiles.
Price Performance and Zacks Rank
Shares of Raytheon Technologies, a Zacks Rank #3 (Hold) company, have gained 9.4% in the past three months compared with the industry’s growth of 3.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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