World News Summary Today: Iran Tightens Control of the Strait of Hormuz, Uber Fined 825 Million Euros

Jim Cramer said he likes L3Harris Technologies and advised investors to build a position gradually rather than trying to pick a bottom, speaking during the October 7 lightning round of Mad Money. Cramer suggested buying in increments, using a $230 stock divided by 10 as a $23 stock, buying the first tranche at 23 and adding down to 20. The comments followed L3Harris's second-quarter results, which showed orders of $7.3 billion, a book-to-bill ratio of 1.2x, and a record backlog of $42 billion. Revenue rose 8% to approximately $5.9 billion, diluted EPS climbed 28% to $3.13, and free cash flow increased 37% to $771 million. Missile Solutions revenue grew 14% to approximately $1.05 billion, while Communications & Spectrum Dominance operating margin rose to 26.9% from 24.6%. Cramer's interest comes even as L3Harris trades at approximately 18.7x forward earnings, above Lockheed Martin at 16.5x and Northrop Grumman at 16.6x, and as hedge fund holders slipped to 56 in Q2 from 59 in Q1.

Raytheon, an RTX business, has secured multi-year U.S. Navy contracts worth up to US$24.40 billion for Standard Missile-6 interceptors and up to US$6.30 billion for Standard Missile-3 Block IB interceptors, alongside additional awards tied to rising global missile defense demand. The long-term missile production and sustainment deals deepen RTX's role in critical air and missile defense infrastructure and reinforce its extensive backlog. The five-year Standard Missile 6 contract in particular supports RTX's backlog-driven investment case and ties into management's plan to spend about US$10.0 billion to US$10.5 billion in 2026 on engineering and capital projects aimed at easing missile capacity constraints and improving margins over time. RTX's narrative projects $112.3 billion in revenue and $10.9 billion in earnings by 2029, requiring 6.3% yearly revenue growth and a $3.2 billion earnings increase from $7.7 billion today. Three Simply Wall St community fair value estimates for RTX span roughly US$215.80 to US$234.82 per share, with the forecasts implying a $234.82 fair value and a 27% upside to the current price.

RTX's Raytheon business announced an AMRAAM production contract valued at up to $20.7 billion on September 28, covering five years with two option years and supporting a substantial increase in missile production. The maximum contract value should not be confused with revenue already earned. RTX also reported second-quarter sales of approximately $24.7 billion, up 14%, and adjusted earnings per share of $1.89, up 21%, with a backlog of $289 billion split between $170 billion in commercial orders and $119 billion in defense orders, and management raised its full-year adjusted EPS outlook to $7.10 - $7.25 from $6.70 - $6.90. On Mad Money, Jim Cramer said RTX keeps getting contract after contract despite fears that the defense budget has peaked, but he warned that weakness in commercial aerospace, where airlines could cut plane purchases if oil stays high, remains a complication. Pratt & Whitney's latest quarterly commercial aftermarket sales rose 25% even as commercial original-equipment sales fell 8%, and RTX continues to absorb costs from the Pratt & Whitney powder-metal issue, with its second-quarter filing estimating an approximately $700 million cash impact in 2026. At approximately 24.9x forward earnings, RTX traded below GE Aerospace's 36.9x but above Lockheed Martin's 16.6x, while 92 hedge funds held the stock in the second quarter versus 95 in the first, and short interest stood at 1.01% of the float.

Lockheed Martin Corp. has secured a key framework agreement with the Pentagon for its AIM-260 Joint Advanced Tactical Missile, positioning the company to ramp up production and delivery timelines for the advanced air dominance missile. The framework could provide multiyear revenue visibility if a proposed procurement contract secures Congressional approval, and Australia has announced plans to invest around A$736 million to equip the Royal Australian Air Force with the JATM. Lockheed Martin's partnership with Raytheon, The Javelin Joint Venture, signed an MOU with Tata Advanced Systems to explore co-production of the Javelin All Up Round missile system in India. The stock traded at $505.50 by October 1 closing, stretching Lockheed's 2026 year-to-date return to 4.51%, with a market capitalization of $124.19 billion and a trailing P/E ratio of 19.84x. Hedge fund ownership declined from 83 funds in Q1 2026 to 75 funds in the following quarter, while State Street Corporation held 32.98 million shares, or 14.29% ownership, as of June 30.

RTX Corporation received an $11.6 million Navy contract modification for spare Seeker Head Assemblies supporting RAM Block 1/2 guided missile round packs, with work extending through December 2029. The award reflects recurring sustainment demand tied to the Rolling Airframe Missile program, which provides ships with short-range defense against anti-ship missiles and other airborne threats. RTX's Raytheon business has a long-standing role in the RAM program, supporting continued production and sustainment of the system. Beyond RAM, RTX holds a broad portfolio of missile defense and precision weapons serving U.S. and international customers, and growing efforts to replenish missile inventories and modernize naval fleets could create additional opportunities. Shares of RTX have surged 11.1% in the past year against the industry's 20.6% decline, and the stock carries a Zacks Rank #3 (Hold).

Boeing has secured an undefinitized contract worth about US$14.7b from Lockheed Martin to scale PAC-3 Missile Segment Enhancement seeker production over a seven year period. The award comes as Boeing shares closed at US$188.32, with a 90 day share price return down 15.59%, a year to date share price return down 17.32%, and a one year total shareholder return down 16.42%. On the operating side, Commercial Airplanes narrowed its operating margin from negative 5.1% to negative 2.7% on 171 deliveries against 150, while the 737 is transitioning to 47 per month from 38 a year ago, with a fourth Everett line activated in July and management targeting 52 next year. A Simply Wall St narrative pegs Boeing's fair value at $160.01, implying the stock is 17.7% overvalued, while the firm's discounted cash flow model points to a future cash flow value of $376.49.