8 Best Military Drone Stocks To Buy According to Analysts

4. RTX Corporation (NYSE:RTX)

Median Share Price Upside Potential: 5.47% 

Total Analysts: 15

Number of Hedge Fund Holders: 54

Weighted Ranking: 3.8

RTX Corporation is a giant in the global aerospace and defense industry, providing systems and services to clients in the commercial, military, and government sectors. The company operates through three main businesses: Collins Aerospace, Pratt & Whitney, and Raytheon.

Its relevance as a military drone stock stems from its focus on drone-based missile systems and counter-drone technologies. RTX’s expertise in radars, sensors, and electronic warfare offerings also reinforces its strong position in the global military drone market.

In October this year, the company showcased the capabilities of its counter-drone technology to the U.S. Army at the Yuma Proving Ground in Arizona, in which its Coyote Block 2 and Block 3 effectors and Ku-band Radio Frequency Sensor (KuRFS) were tested as part of the Army’s counter-drone solution. Both pieces of equipment excelled in the stress tests, validating the enhancements made by RTX Corporation (NYSE:RTX) to these systems.

RTX announced its third-quarter financial results for 2024 on October 22, reporting sales of $20.1 billion, up 6% year-over-year, and 8% organically. The strong results were fueled by an 11% growth in commercial aftermarket sales, on top of the 25% rise last year driven by the growth in global air travel. Defense-related sales also grew 10% during the quarter. Adjusted EPS was logged at $1.45, rising 16% from last year, and beating expectations of $1.34 per share.

Collins Aerospace segment generated a 6% increase in revenue from last year to reach $7.08 billion, while sales at Pratt & Whitney were reported at $7.24 billion, growing 14% on both adjusted and organic basis. There was a 1% dip in sales figures at Raytheon, which totaled $6.4 billion. This was due to the cybersecurity divestiture during the first quarter.

RTX Corporation (NYSE:RTX) ended Q3 with a backlog of $221 billion, comprising $90 billion of defense and $131 billion worth of commercial orders. After robust results in Q3, the company has raised its outlook for the full year 2024. It now expects sales for the year to be in the range of $79.25 billion to $79.75 billion, up from $78.75 billion to $79.5 billion. EPS is projected to be between $5.50 and $5.58 per share.

The overall sentiment among Wall Street analysts about RTX is positive. They have a consensus on its Buy rating and anticipate a median upside potential in its share price of 5.47%. It is one of the best military drone stocks to buy according to analysts.