Three defense titans, three different flight paths — but only one may come out on top when Lockheed Martin (LMT), RTX Corp (NYSE:RTX), and Northrop Grumman Corp (NYSE:NOC) report earnings Tuesday before the bell. With investors closely tracking valuation, momentum, and technicals, this aerospace earnings face-off is about to get turbulent.
RTX: Flying High, Valued Higher
RTX has been the surprise high-flyer. With a 47% gain over the past year and a 32% YTD rally, it's the clear momentum leader. Technically, it's flashing bullish signals across all moving averages, and second quarter expectations sit at $1.45 EPS on $20.66 billion revenue.
But here's the catch — valuations are steep. RTX trades at a 44.4x trailing and 25.2x forward P/E, which is significantly above its peers. Investors will be watching if the company can deliver numbers to justify the altitude.
Lockheed: Stalled On The Runway
Lockheed Martin, meanwhile, appears to be stuck. The stock is down 2.2% year-over-year and sits below all major moving averages — a full house of sell signals. Second quarter expectations call for $6.63 EPS on $18.63 billion revenue, but weak price action suggests muted optimism.
Valuation-wise, LMT trades at a more grounded 17.2x forward P/E, with a 5% earnings yield — but unless it surprises to the upside, it risks falling further behind the pack.
Northrop: The Stealth Challenger
Northrop Grumman has quietly climbed 19% in the past year and is technically the most consistent. It's trading above all key SMAs, and its second-quarter forecast of $6.76 EPS on $10.11 billion revenue gives it a solid footing.
Still, with a high PEG ratio of 3.2, growth expectations may already be priced in.
Who’s Cleared For Takeoff?
RTX is flying fastest, but with a lofty valuation and high expectations. Lockheed has the cheapest multiple but lacks momentum. Northrop offers a middle ground — steady gains, solid earnings, and bullish technicals.
Tuesday’s earnings may decide which name investors should be saluting.
Read Next:
Photo: Shutterstock
