We recently published a list of Top 10 Growing Aerospace and Defense Stocks For Trump’s Presidency. In this article, we are going to take a look at where RTX Corporation (NYSE:RTX) stands against other top growing aerospace and defense stocks for Trump’s Presidency.
There is carnage in the US stock market as the major indices continue to shed points after last week’s aggressive selloff. The Dow was down over 2% with the S&P losing nearly 3% of its value. Nasdaq continued to be the worst of the three, down 4% by market close.
As tariffs continue to spook markets, we look at sectors that are either a safer bet amid the volatility, or provide near-term growth opportunities. In the Aerospace and Defense Industries, such an opportunity is currently presenting itself.
The US is signaling to the rest of the world that it needs to spend more on its own defense rather than relying on the US for military aid. This is making major economies of the world rethink their defense budget allocations.
Since most of the Western world buys its military equipment from the US, the money is eventually going to flow into US companies. This simple bullish thesis is what’s driving the industry and we believe it is time for investors to take positions in these stocks to benefit from this.
To come up with the list of 10 buy and forget Aerospace and Defense stocks for Trump’s Presidency, we only considered stocks with a market cap of at least $2 billion that are the best performers so far in 2025.
An aerial view of a commercial jetliner in flight, its airframe glinting in the sun.
RTX Corporation (NYSE:RTX)
RTX Corporation serves both the commercial aerospace as well as the defense industry. It is usually in the news for its defensive and offensive threat dealing capabilities, but the more stable parts of the business, the Collins Aerospace and the Pratt & Whitney segment, are what make the stock attractive for long-term investors.
RTX’s impressive Q4 results meant that the company was able to register double digit sales growth across all its segments. This is particularly important because in the past, the company has struggled to compete with its peers in the Raytheon segment. The return to growth of this segment is good news for investors.
The company’s 2025 guidance came in below analyst expectations but the projected sales growth, together with $7.25 billion in free cash flow, should not worry investors much. With the company expecting margin improvement through the year, earnings could surprise to the upside by the end of the year.
Overall, RTX ranks 8th on our list of top growing aerospace and defense stocks for Trump’s Presidency. While we acknowledge the potential of RTX as a leading investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as RTX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.