10 Best American Defense Stocks To Buy According to Hedge Funds

3. RTX Corporation (NYSE:RTX)

Number of Hedge Fund Holders: 54

RTX Corporation (NYSE:RTX), a leading aerospace and defense company, provides systems and services to global commercial, military, and government clients. It operates through four key segments: Collins Aerospace, Pratt & Whitney, Raytheon Intelligence & Space, and Raytheon Missiles & Defense.

TD Cowen remains optimistic about RTX Corporation (NYSE:RTX), maintaining a Buy rating and setting a price target of $142. This confidence was bolstered by an update from Germany’s MTU Aero Engines, which raised its C24 EBIT guidance by around 5% following strong third-quarter results, a boost that was partly due to the success of Pratt & Whitney’s “Fleet Management Plan,” where MTU has an 18% revenue share.

RTX Corporation (NYSE:RTX) has also made significant strides by passing the U.S. Army’s counter-drone technology tests, showcasing the effectiveness of its Ku-band Radio Frequency Sensor and Coyote Block 2 and Block 3 interceptors. Additionally, the company secured a $736 million contract with the U.S. Navy for the production of the AIM-9X SIDEWINDER Block II missiles.