RT Armchair Warlord (@ArmchairW)Why doesn't the US use more Israeli equipment?Real question. Much of the IDF's arsenal isn't just paid for by American taxpayers but actually manufactured in the United States. Adopting much of this gear for our own forces should be trivial - yet we use little of it.Why?⬇️Let's review the wavetops for starters.Facing imminent war with Iran - a war they ended up starting entirely on their own timetable - the Israelis actually divested their Patriot systems, the mainstay of Ame ...

Geopolitical Impact on Energy Markets - The recent Israeli and U.S. strikes on Iranian infrastructure, including an irradiation facility in Isfahan, have heightened geopolitical volatility, although no radioactive contamination has been reported [2][8] - Iraq's Foreign Ministry has warned that disruptions in the Strait of Hormuz could threaten 20% of the world's oil supply, leading to increased Brent crude prices nearing $90 per barrel [3][8] - The conflict has caused shipping companies to suspend operations, resulting in heightened volatility for energy-related funds such as the United States Oil Fund (USO) and the Energy Select Sector SPDR Fund (XLE) [3] Regional Security Concerns - A military projectile incident in Saudi Arabia resulted in two civilian deaths and 12 injuries, further escalating regional tensions and drawing attention to defense contractors like Lockheed Martin and RTX Corporation [4][8] - The ongoing conflict has implications for air defense systems in the region, which are actively engaged against drone and missile threats [4] Canadian Political Developments - Prime Minister Mark Carney has called for three byelections on April 13, 2026, which could allow the Liberal Party to secure a majority in the House of Commons [5][6] - The political landscape is shifting following the resignations of key ministers and a Supreme Court ruling affecting the Terrebonne seat, prompting investors to monitor the iShares MSCI Canada ETF (EWC) for market reactions [6] U.S. Legislative Stalemate - Donald Trump's declaration to block all new bills until the SAVE America Act is passed has led to a legislative freeze, potentially delaying critical funding and policy measures as midterm elections approach [7][9] - The standoff may increase market uncertainty, particularly regarding budget negotiations and the debt ceiling, as Trump's strategy emphasizes leveraging executive power for social and electoral reforms [9]

Core Insights - RTX Corporation is a major player in the aerospace and defense industry, with a market capitalization of $232.2 billion, providing a wide range of systems and services to commercial, military, and government customers [1][2] Company Performance - RTX's stock has experienced a 4.5% decline from its 52-week high of $181.31, reached on October 28, but has gained 8.5% over the past three months, outperforming the S&P 500 Index's 5.4% gains during the same period [3] - Year-to-date, RTX shares have risen by 49.7% and 43.6% over the past 52 weeks, significantly outperforming the S&P 500 Index's YTD gains of 15.8% and 13.1% over the last year [4] Financial Results - In Q3, RTX reported an adjusted EPS of $1.70, surpassing Wall Street's expectations of $1.42, with revenue of $22.5 billion, exceeding the forecast of $21.5 billion [5] - The company anticipates full-year adjusted EPS in the range of $6.10 to $6.20 [5] Growth Drivers - RTX's growth is primarily driven by increased defense sales, particularly in Patriot systems, and higher sales at Pratt & Whitney, supported by rising aerospace demand [5]

Core Insights - RTX Corporation has a market capitalization of $236.5 billion and operates in the aerospace and defense sector through three main segments: Collins Aerospace, Pratt & Whitney, and Raytheon, serving commercial, military, and government clients globally [1] Stock Performance - RTX shares have significantly outperformed the broader market, increasing by 45.6% over the past 52 weeks, compared to a 17.4% rise in the S&P 500 Index [2] - Year-to-date, RTX stock is up 53.3%, while the S&P 500 has seen a nearly 16% increase [2] - The company's performance also surpassed the Industrial Select Sector SPDR Fund's 14.3% return over the same period [3] Financial Results - On October 21, RTX reported Q3 2025 adjusted EPS of $1.70 and revenue of $22.48 billion, exceeding forecasts [4] - The company raised its full-year adjusted EPS outlook to between $6.10 and $6.20 and revenue guidance to between $86.5 billion and $87 billion, indicating strong demand [4] - Growth was driven by a 10% increase in defense sales, particularly in Patriot systems, and a 16% rise in Pratt & Whitney sales due to booming aerospace demand [4] Analyst Expectations - For the fiscal year ending December 2025, analysts project RTX's adjusted EPS to grow by 7.9% year-over-year to $6.18 [5] - RTX has a strong earnings surprise history, having exceeded consensus estimates in the last four quarters [5] - Among 21 analysts covering the stock, the consensus rating is a "Moderate Buy," with 13 "Strong Buy" ratings, one "Moderate Buy," and seven "Holds" [5] Price Targets - BofA analyst Ronald Epstein raised RTX's price target to $215 while maintaining a "Buy" rating [6] - The mean price target of $188.78 suggests a 6.4% premium to RTX's current price levels [6] - The highest price target of $215 indicates a potential upside of 21.2% [6]

Morgan Brennan has uh the defense names on the move this morning after earnings. Dom Chu has some other key names to watch. Morgan, we'll start with you.All right, good morning, Andrew. Well, it's a mixed picture for defense today as those earnings get underway. North of Grman higher on a beat and a raise.The B2 bomber maker getting a boost from its Sentinel ballistic missile and B21 bomber programs. RTX though, that was lower down about 2% here in pre-market after trimming fullear profit guidance. higher c ...