10 Best Low Beta Stocks To Buy

2. RTX Corporation (NYSE:RTX)

5-year Beta (monthly): 0.54

Number of Hedge Fund Holders: 54

One of the best low beta stocks, RTX Corporation (NYSE:RTX), previously known as Raytheon Technologies Corporation, is a known force in the aerospace and defense sectors. The company was formed in April 2020 from the merger of Raytheon Company and United Technologies Corporation. It rebranded to RTX in July 2023. Its extensive portfolio serves a diverse range of clients, including commercial, military, and government customers both domestically and internationally.

The company operates through four segments, Collins Aerospace, Pratt & Whitney, Raytheon Intelligence & Space, and Raytheon Missiles & Defense. The diversified approach allows it to offer an impressive range of products and services, from aircraft engines and avionics systems to missile defense solutions and advanced cybersecurity technologies.

In the second quarter, 54 hedge funds held positions in RTX (NYSE:RTX) worth $2.817 billion. As of Q2, Fisher Asset Management is the most dominant shareholder in the company and has a position worth $1.769 billion.

In 2024, the company has secured several significant contracts that signify its leadership in the industry. A standout achievement came in July when the Missile Defense Agency awarded the company a substantial $1.94 billion contract to produce Standard Missile-3 Block IIA interceptors for the U.S. government and Japan’s defense ministry. The project, based in Tucson, Arizona, and Huntsville, Alabama, is set to continue until February 2031, which affirms its role in enhancing global defense capabilities.

Additionally, in April, Raytheon, a subsidiary of RTX, was granted a $344 million contract aimed at modernizing the electronics for two missile variants, the SM-2 Block IIICU and SM-6 Block IU. The initiative is crucial for improving missile guidance systems, which ensures the effectiveness of these systems for the U.S. Navy and allied forces.

Another key development occurred in August when RTX’s (NYSE:RTX) Raytheon received a $478 million contract from the NATO Support and Procurement Agency to supply additional GEM-T missiles to Germany. The contract plays an important role in replenishing Patriot missiles that Germany donated to Ukraine.

Further solidifying its position, on September 11, Raytheon was awarded a landmark $1.19 billion contract for the production of Advanced Medium Range Air-to-Air Missiles (AMRAAM), including additional support hardware. The contract involves Foreign Military Sales to multiple countries such as Bahrain, Canada, Germany, Japan, and Ukraine, which shows its essential role in global defense partnerships.