This article analyzes the performance and future prospects of two defense giants, RTX and Lockheed Martin. While both companies are considered strong investments, RTX is projected to outperform Lockheed Martin in 2025 due to strong revenue growth, margin expansion, and positive analyst sentiment. Lockheed Martin, on the other hand, faces headwinds from mounting losses in classified projects and potentially falling price targets from analysts.
are both high-quality companies that can deliver shareholder value over the long term and drive their share prices ever higher. However, business trends and analysts' sentiment indicate that RTX is a Buy for 2025 and Lockheed Martin for tomorrow. RTX 's share price will likely trend higher in 2025 and could gain as much as 25% before it peaks. On the other hand, Lockheed Martin will likely wallow near its early February levels until its market can regain traction later in the year.
RTX, in comparison, grew revenue by 8.5% and outpaced MarketBeat’s reported consensus by a significant margin. Growth in all operating segments, including commercial and government business, drove its strength. Organically, the business is up by 11%, and margin expansion is also logged. Margin expansion resulted in leveraged, double-digit bottom-line gains, up 19% adjusted and nearly 1200 basis points better than forecasted.
Capital returns are yet another reason that RTX’s share price will increase in 2025 and that LMT’s will grow over time. Both companies produce ample cash flow, have a fortress balance sheet, and can aggressively repurchase shares while paying dividends and investing in their businesses. Lockheed is more aggressive, reducing its count by nearly 3.75% year over year in Q4, but RTX is no slouch, reducing its count by 1%.
Finance Defense Industry RTX LOCKHEED MARTIN DEFENSE STOCKS SHARE PRICE ANALYST SENTIMENT MARKET PERFORMANCE REVENUE GROWTH PROFITABILITY
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