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Yahoo
30-07-2025
- Business
- Yahoo
RTX Corporation Stock Outlook: Is Wall Street Bullish or Bearish?
Arlington, Virginia-based RTX Corporation (RTX) is an aerospace and defense company that provides systems and services for commercial, military, and government customers. Valued at a market cap of $210.3 billion, the company is known for its innovations in aviation, missile defense, space technologies, and cybersecurity. This defense giant has outpaced the broader market over the past 52 weeks. Shares of RTX have soared 37.3% over this time frame, while the broader S&P 500 Index ($SPX) has gained 16.6%. Moreover, on a YTD basis, the stock is up 35.8%, compared to SPX's 8.3% return. More News from Barchart Here's What Happened the Last Time Novo Nordisk Stock Was This Oversold As SoFi Raises 2025 Guidance, Should You Buy, Sell, or Hold SOFI Stock Here? Earnings Will Be 'Worse Than Expected' for UnitedHealth. How Should You Play UNH Stock Here? Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! However, narrowing the focus, RTX has lagged behind the SPDR S&P Aerospace & Defense ETF's (XAR) 47% uptick over the past 52 weeks. Nonetheless, it has outperformed the ETF's 31.5% rise on a YTD basis. Despite delivering better-than-expected Q2 results on Jul. 22, shares of RTX plunged 1.6% after its earnings release. The company's revenue improved 9.4% year-over-year to $21.6 billion, topping consensus estimates by 5.1%. Moreover, its adjusted EPS of $1.56 advanced 10.6% from the same period last year, surpassing analyst expectations by 7.6%. Robust organic sales and profit growth across all three segments supported its results. However, RTX lowered its fiscal 2025 adjusted EPS guidance in the range of $5.80 to $5.95, which might have weighed on investor sentiment, leading to a fall in its stock price. For the current fiscal year, ending in December, analysts expect RTX's EPS to grow 3.7% year over year to $5.94. The company's earnings surprise history is promising. It exceeded the consensus estimates in each of the last four quarters. Among the 24 analysts covering the stock, the consensus rating is a 'Moderate Buy,' which is based on 15 'Strong Buy,' one "Moderate Buy,' and eight 'Hold' ratings. This configuration is slightly more bullish than three months ago, with 14 analysts suggesting a 'Strong Buy' rating. On Jul. 23, BofA Securities maintained a 'Buy' rating on RTX and raised its price target to $175, indicating an 11.4% potential upside from the current levels. While the company is trading above its mean price target of $156.87, its Street-high price target of $182 suggests an upside potential of 15.8%. On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
11-06-2025
- Business
- Yahoo
Should You Invest in the SPDR S&P Aerospace & Defense ETF (XAR)?
If you're interested in broad exposure to the Industrials - Aerospace & Defense segment of the equity market, look no further than the SPDR S&P Aerospace & Defense ETF (XAR), a passively managed exchange traded fund launched on 09/28/2011. While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency. Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Industrials - Aerospace & Defense is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 1, placing it in top 6%. The fund is sponsored by State Street Global Advisors. It has amassed assets over $3.25 billion, making it one of the larger ETFs attempting to match the performance of the Industrials - Aerospace & Defense segment of the equity market. XAR seeks to match the performance of the S&P Aerospace & Defense Select Industry Index before fees and expenses. The S&P Aerospace & Defense Select Industry Index represents the aerospace & defense sub-industry portion of the S&P Total Stock Market Index. The S&P TMI tracks all the U.S. common stocks listed on the NYSE, AMEX, NASDAQ National Market and NASDAQ Global Select Market. The Aerospace & Defense Index is a modified equal weight index. Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same. Annual operating expenses for this ETF are 0.35%, making it one of the least expensive products in the space. It has a 12-month trailing dividend yield of 0.57%. ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis. This ETF has heaviest allocation in the Industrials sector--about 100% of the portfolio. Looking at individual holdings, Aerovironment Inc (AVAV) accounts for about 4.73% of total assets, followed by Howmet Aerospace Inc (HWM) and Kratos Defense + Security (KTOS). The top 10 holdings account for about 42.46% of total assets under management. So far this year, XAR has added about 18.94%, and is up roughly 39.63% in the last one year (as of 06/11/2025). During this past 52-week period, the fund has traded between $138.69 and $200.74. The ETF has a beta of 1.06 and standard deviation of 21.65% for the trailing three-year period, making it a medium risk choice in the space. With about 37 holdings, it has more concentrated exposure than peers. SPDR S&P Aerospace & Defense ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, XAR is an excellent option for investors seeking exposure to the Industrials ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well. Invesco Aerospace & Defense ETF (PPA) tracks SPADE Defense Index and the iShares U.S. Aerospace & Defense ETF (ITA) tracks Dow Jones U.S. Select Aerospace & Defense Index. Invesco Aerospace & Defense ETF has $5.36 billion in assets, iShares U.S. Aerospace & Defense ETF has $7.70 billion. PPA has an expense ratio of 0.57% and ITA charges 0.40%. To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SPDR S&P Aerospace & Defense ETF (XAR): ETF Research Reports AeroVironment, Inc. (AVAV) : Free Stock Analysis Report Kratos Defense & Security Solutions, Inc. (KTOS) : Free Stock Analysis Report iShares U.S. Aerospace & Defense ETF (ITA): ETF Research Reports Invesco Aerospace & Defense ETF (PPA): ETF Research Reports Howmet Aerospace Inc. (HWM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
15-05-2025
- Business
- Yahoo
Is SPDR S&P Aerospace & Defense ETF (XAR) a Strong ETF Right Now?
A smart beta exchange traded fund, the SPDR S&P Aerospace & Defense ETF (XAR) debuted on 09/28/2011, and offers broad exposure to the Industrials ETFs category of the market. Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry. Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency. However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta. By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such. This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results. The fund is managed by State Street Global Advisors. XAR has been able to amass assets over $2.98 billion, making it one of the larger ETFs in the Industrials ETFs. XAR seeks to match the performance of the S&P Aerospace & Defense Select Industry Index before fees and expenses. The S&P Aerospace & Defense Select Industry Index represents the aerospace & defense sub-industry portion of the S&P Total Stock Market Index. The S&P TMI tracks all the U.S. common stocks listed on the NYSE, AMEX, NASDAQ National Market and NASDAQ Global Select Market. The Aerospace & Defense Index is a modified equal weight index. Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same. Operating expenses on an annual basis are 0.35% for XAR, making it one of the least expensive products in the space. It has a 12-month trailing dividend yield of 0.62%. ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis. This ETF has heaviest allocation in the Industrials sector - about 100% of the portfolio. Looking at individual holdings, Boeing Co/the (BA) accounts for about 4.24% of total assets, followed by Northrop Grumman Corp (NOC) and Huntington Ingalls Industrie (HII). Its top 10 holdings account for approximately 40.75% of XAR's total assets under management. The ETF return is roughly 10.83% so far this year and was up about 28.64% in the last one year (as of 05/15/2025). In the past 52-week period, it has traded between $138.69 and $183.59. The ETF has a beta of 1.05 and standard deviation of 21.90% for the trailing three-year period, making it a medium risk choice in the space. With about 38 holdings, it has more concentrated exposure than peers. SPDR S&P Aerospace & Defense ETF is an excellent option for investors seeking to outperform the Industrials ETFs segment of the market. There are other ETFs in the space which investors could consider as well. Invesco Aerospace & Defense ETF (PPA) tracks SPADE Defense Index and the iShares U.S. Aerospace & Defense ETF (ITA) tracks Dow Jones U.S. Select Aerospace & Defense Index. Invesco Aerospace & Defense ETF has $5.02 billion in assets, iShares U.S. Aerospace & Defense ETF has $6.88 billion. PPA has an expense ratio of 0.57% and ITA charges 0.40%. Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Industrials ETFs. To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SPDR S&P Aerospace & Defense ETF (XAR): ETF Research Reports The Boeing Company (BA) : Free Stock Analysis Report Northrop Grumman Corporation (NOC) : Free Stock Analysis Report Huntington Ingalls Industries, Inc. (HII) : Free Stock Analysis Report iShares U.S. Aerospace & Defense ETF (ITA): ETF Research Reports Invesco Aerospace & Defense ETF (PPA): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
