Since the arms trade is a two-way street, Israel’s exports offer far more than just commercial benefit. We explain how defence contracts with other countries help shield it from penalties over its conduct of the war in Gaza https://t.co/xiPbfpWTIv ...

Core Insights - RTX has secured a $50 billion contract from the U.S. Defense Logistics Agency, significantly larger than Palantir's recent $10 billion contract [5][6][12] - The RTX contract is primarily for support of the Patriot air defense systems over a 20-year term, potentially generating $2.5 billion in annual revenue [6][7][9] - Despite the large contract, RTX's stock may not be a good buy due to its high valuation and limited impact on long-term earnings growth [13][14] Company Overview - RTX, formerly known as Raytheon, operates across multiple business segments, including Collins Aerospace and Pratt & Whitney, with total sales of $80.7 billion last year [9] - The Patriot contract represents approximately 9.4% of Raytheon's total annual revenue, indicating its significance within the company's overall financials [9] Financial Implications - The new Patriot contract is expected to contribute around $243 million annually to RTX's profits, which is only about 4% of the company's earnings over the last 12 months [11][12] - Analysts estimate RTX's long-term earnings growth rate at 8.7%, suggesting that the new contract may not significantly enhance this growth rate [13]

In times of market volatility, investors search for stability in their portfolios. Defense stocks can serve this need. If you are tired of watching high-growth stocks go up and down wildly and add stress to your life, you may want to transition some of your invested capital to defense-industry stocks that generate steadier returns with less volatility. Lockheed Martin (LMT -2.71%) is the perfect defense stock for you to buy right now. It has steady contracts with the U.S. and its allies around the world, an ...