11 Best American Defense Stocks to Buy Now

3. RTX Corporation (NYSE:RTX)

Number of Hedge Fund Holders: 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. The company operates through three main businesses: Collins Aerospace, Pratt & Whitney, and Raytheon.

Regular awards of high-value contracts have made RTX a popular stock for investors looking to increase their exposure to the defense industry. According to Insider Monkey’s database for Q4 2024, 80 hedge funds held a stake in the company, up from 72 at the end of the third quarter.

On February 20, RTX Corporation (NYSE:RTX)’s Pratt & Whitney business was awarded a three-year sustainment contract, valued at $1.5 billion, for F119 engines, which power the Air Force’s F-22 fighter jets. Earlier in the year, Raytheon secured a $946 million deal to provide additional Patriot air and missile defense systems to Romania, inclusive of radars, missiles, and control stations.

On March 11, RTX Corporation (NYSE:RTX)’s Collins Aerospace business was approved to begin full rate production of the MAPS Gen II system to be installed on combat ground vehicles of the US Army and Marine Corps. Here is what the company stated on the approval:

“Through close coordination with our customer, we’ve met the modernized fielding requirements for MAPS while reducing production costs. MAPS GEN II is a critical part of the DOD’s modernization goals and will provide the warfighter with trusted access to Assured PNT when they need it most.”

RTX Corporation (NYSE:RTX) had a robust fiscal 2024, with adjusted sales of $80.8 billion, growing 9% year-over-year. Adjusted EPS was logged at $5.73, up 13% from last year. The company returned $3.7 billion of capital to shareholders during the year and headed into fiscal 2025 with a backlog of $218 billion. Wall Street analysts are bullish on RTX with a consensus Buy rating and an average share price upside potential of 7.59%. It is one of the best defense stocks to buy now.