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The U.S. Department of Defense is intensifying its focus on maritime readiness, anchoring a multi-billion-dollar capital allocation to fortify propulsion systems and tactical naval infrastructure. Escalating geopolitical tensions across the South China Sea and the Strait of Hormuz are compelling the Pentagon to prioritize a rapid fleet modernization cycle.

This acceleration toward a sustained defense posture could secure a high-margin revenue stream for prime contractors over the coming decade. Recent pullbacks among these defense sector leaders may offer a tactical entry window for investors seeking a structurally hedged equity exposure.

Market participants monitoring the aerospace landscape may identify meaningful catalysts as entrenched government mandates evolve into reliable, long-term cash flows. Deconstructing the mechanics of these procurement agreements will help investors understand why specific industrial powerhouses possess the specialized engineering moats necessary to capitalize on this military pivot.

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The Naval Defense Supercycle Takes ShapeThe macroeconomic environment surrounding global defense has shifted significantly. Rather than relying solely on the lengthy procurement of next-generation platforms, the Department of Defense is heavily prioritizing the sustainment, modernization, and tactical readiness of its existing fleet.

Original equipment manufacturers are wrestling with lingering supply chain bottlenecks, which naturally forces allied militaries and commercial airlines to operate older aircraft and maritime vessels for extended lifecycles to maintain force projection.

This dynamic triggers an aftermarket maintenance, repair, and overhaul supercycle. Maintenance and repair services historically command significantly higher margins than original equipment manufacturing because they involve recurring, highly specialized engineering work within a captive market.

When global instability rises, the demand for immediate fleet readiness directly translates into potentially lucrative, multi-year logistics agreements. Contractors that own the intellectual property and manufacturing capabilities for these critical components can secure a durable revenue stream for fleet sustainment over the next decade.

GE Aerospace: Powering the Navy’s PushGE Aerospace Today

GE

GE Aerospace

$333.76 +0.27 (+0.08%)

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Following its structural reorganization into a pure-play aerospace and defense entity, GE Aerospace NYSE: GE has demonstrated exceptional operational efficiency. General Electric recently secured a performance-based logistics contract from the U.S. Navy worth up to approximately $2.87 billion. Running through August 2031, this five-year agreement covers 17 critical components for the F414 engines, which serve as the primary propulsion systems for the Navy’s F/A-18 E/F Super Hornet and EA-18G Growler aircraft.

GE Aerospace is also expanding its global footprint by securing an engine order for the Republic of Korea Navy’s next-generation KDDX destroyers, proving that demand for its propulsion technology extends well beyond domestic borders. GE Aerospace will supply 12 LM2500+G4 marine gas turbine engines for six ships in the KDDX program.

These long-term contracts flow directly into a highly optimized balance sheet. GE Aerospace currently operates with a net margin closing in on 18%, alongside an efficient return on equity of roughly 40%. The recent second-quarter earnings report validated this fundamental strength, revealing an approximate 43% year-over-year rise in free cash flow to about $3 billion.

GE Aerospace posted an earnings per share of $2.02 against a consensus estimate of $1.86. This cash generation gives management the flexibility to comfortably raise full-year guidance across revenue, operating profit, and earnings per share, reinforcing its leadership position in the aerospace sector.

RTX Corp: A Moat Filled With Backlogs and TomahawksRTX Today

$200.52 -1.61 (-0.80%)

As of 12:00 PM Eastern

This is a fair market value price provided by Massive. Learn more.

$150.61▼

$226.881.46%

35.33

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While GE Aerospace dominates the physical propulsion space, RTX Corp NYSE: RTX is securing the tactical and navigational infrastructure required for modern naval warfare. The Naval Air Warfare Center Aircraft Division recently awarded RTX Corporation, managed through RTX's Collins Aerospace subsidiary, an approximately $42.5 million sole-source contract. This provides technical, engineering, and restoration services for Navy air traffic navigation and coordination systems through August 2031.

While a $42.5 million contract might seem like a standard incremental win, it acts as a strategic complement to an approximately $22.9 billion Navy Tomahawk missile contract the defense contractor secured just weeks prior. The true fundamental moat for RTX Corporation lies in its substantial revenue visibility. RTX Corporation recently reported an approximate $289 billion total backlog, with $119 billion specifically concentrated in the defense sector.

This forward-looking backlog helps to de-risk the long-term investment thesis. RTX Corporation operates with lower net margins than GE Aerospace, hovering around 8%, but its conservative balance sheet, highlighted by a debt-to-equity ratio of 0.47 and a remarkably low beta of 0.29, solidifies its status as a defensive safe-haven asset. The sheer volume of its defense backlog helps reduce near-term macroeconomic uncertainty, ensuring a steady conversion of contracts into realized revenue while supporting a reliable dividend yield of roughly 1.45%.

Strategic Entries in a Turbulent MarketDespite these powerful fundamental catalysts, both equities have experienced short-term market pressure. Over the past 30 days, GE Aerospace shares have retreated by roughly 9%, while RTX Corporation has pulled back around 7%. This price action is largely a function of broader market rotation and the necessary digestion of valuation.

Both stocks command premium multiples, with GE Aerospace trading at a trailing price-to-earnings ratio near 39 and RTX Corporation trading around 35 times earnings. At these valuations, the market demands strong execution, leaving minimal room for operational missteps.

Recent Securities and Exchange Commission filings reveal notable insider selling at both companies, including a senior vice president at GE Aerospace reducing his position by roughly 28% in late July, and an executive vice president at RTX Corporation offloading shares in August.

However, insider selling is rarely a single-variable indicator of underlying business health, especially when contrasted with steady institutional support. Firms like Susquehanna Fundamental Investments have recently increased their holdings in GE Aerospace, while the California State Teachers' Retirement System maintains an approximately 28.9% block of the institutional shares in RTX Corporation. The recent pullbacks have effectively eased some of the premium-pricing pressure, offering a more reasonable entry multiple for long-term allocators looking to capitalize on defense spending.

Tactical Positioning for Long-Term GrowthThe transition toward a sustained, multi-theater defense posture ensures that prime contractors will remain heavily capitalized by the Department of Defense. The combination of multi-billion-dollar procurements and a structurally entrenched aftermarket repair supercycle provides a rare blend of reliable growth and downside protection. Companies possessing the specialized engineering capabilities to maintain and upgrade existing fleets are uniquely positioned to capture high-margin, recurring revenue for years to come.

Investors weighing exposure to the aerospace and defense sectors might want to monitor how these backlogs convert into free cash flow over the coming quarters. Cautious investors may prefer to track the price-to-earnings compression of these equities before initiating a position, keeping a close eye on upcoming earnings calls for updates on supply chain efficiencies and continued margin expansion.

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Investors with an interest in Aerospace - Defense stocks have likely encountered both Embraer (EMBJ) and RTX (RTX). But which of these two companies is the best option for those looking for undervalued stocks?

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?

Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about RTX (RTX - Free Report) .

RTX currently has an average brokerage recommendation (ABR) of 1.80, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 25 brokerage firms. An ABR of 1.80 approximates between Strong Buy and Buy.

Of the 25 recommendations that derive the current ABR, 15 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 60% and 8% of all recommendations.

Brokerage Recommendation Trends for RTX

Check price target & stock forecast for RTX here>>>

The ABR suggests buying RTX, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.

Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.

This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.

Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.

Zacks Rank Should Not Be Confused With ABRIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.

Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.

In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.

In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.

There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.

Is RTX a Good Investment?Looking at the earnings estimate revisions for RTX, the Zacks Consensus Estimate for the current year has increased 0.1% over the past month to $7.22.

Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for RTX. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Therefore, the Buy-equivalent ABR for RTX may serve as a useful guide for investors.

RTX (RTX -1.24%) is one of the world's largest defense companies by revenue, and it's posting strong sales and earnings growth amid a tense geopolitical backdrop and rising military spending. The company's revenue rose 14% year over year to $24.7 billion in the second quarter, and non-GAAP (generally accepted accounting principles) adjusted earnings per share increased 21% to $1.89.

Strikingly, the company's backlog -- deals that have been signed but not yet delivered or recorded as revenue -- increased by 22% compared to the prior-year period, reaching $289 billion. But while RTX's massive backlog is undeniably impressive, its composition might not be what you would expect.

Image source: Getty Images.

RTX isn't just a defense leader. The company also operates a commercial aerospace division, which accounted for 48% of overall revenue in its last fiscal year.

As of the company's second-quarter report, roughly 60% of its $289 billion backlog was orders for its commercial aerospace business -- with the remaining 40% coming from defense orders. The key takeaway here is that RTX's order book is actually meaningfully diversified, and the backlog suggests a strong sales outlook in the coming years.

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Its backlog is likely even stronger than reported for Q2, with the company recently announcing it had secured a seven-year contract to provide Tomahawk cruise missiles to the U.S. military. The contract is worth $22.9 billion over the stretch.

RTX's latest guidance update calls for sales to come in between $95 billion and $96 billion this year. With the company's backlog showing a robust order pipeline and catalysts that could continue to push defense orders higher, the business has solid foundations and an encouraging growth outlook.

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends RTX. The Motley Fool has a disclosure policy.

ARLINGTON, Va., Sept. 1, 2026 /PRNewswire/ -- RTX (NYSE: RTX) Chairman and CEO Chris Calio will speak at the Morgan Stanley 14th Annual Laguna Conference on Tuesday, Sept.

RTX (RTX - Free Report) ended the recent trading session at $207.73, demonstrating a -1.88% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.33%. At the same time, the Dow lost 0.7%, and the tech-heavy Nasdaq lost 0.12%.

Coming into today, shares of the an aerospace and defense company had lost 1.63% in the past month. In that same time, the Aerospace sector lost 6.28%, while the S&P 500 gained 3.87%.

The upcoming earnings release of RTX will be of great interest to investors. On that day, RTX is projected to report earnings of $1.75 per share, which would represent year-over-year growth of 2.94%. Simultaneously, our latest consensus estimate expects the revenue to be $23.84 billion, showing a 6.06% escalation compared to the year-ago quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.22 per share and a revenue of $96.06 billion, representing changes of +14.79% and +8.41%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for RTX. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.27% higher. As of now, RTX holds a Zacks Rank of #3 (Hold).

In terms of valuation, RTX is presently being traded at a Forward P/E ratio of 29.34. For comparison, its industry has an average Forward P/E of 22.48, which means RTX is trading at a premium to the group.

We can also see that RTX currently has a PEG ratio of 2.52. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Aerospace - Defense industry held an average PEG ratio of 1.6.

The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 150, which puts it in the bottom 40% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

Key Takeaways RTX shares surged 31.2% in the past year, while L3Harris declined 5.3%, giving RTX stronger momentum.RTX's 2026 sales and EPS estimates imply 8.4% and 14.8% growth, topping L3Harris' 8.2% and 9.4%.RTX's 6.33% ROIC tops L3Harris' 5.14%, while its commercial and defense exposure adds diversification. Rising global defense budgets and growing demand for advanced military technologies continue to support growth across the aerospace and defense sector, benefiting players like RTX Corporation (RTX - Free Report) and L3Harris Technologies, Inc. (LHX - Free Report) . Both companies maintain solid defense portfolios and are well-positioned to benefit from modernization programs and rising geopolitical tensions.

RTX stands out with its diversified portfolio spanning commercial aerospace and defense. Its Pratt & Whitney engines and Collins Aerospace systems benefit from strong commercial aviation demand, while its Raytheon business gains from growing demand for missile systems, air defense solutions, radars and other advanced military technologies.

In contrast, L3Harris maintains a strong presence in defense electronics, communication systems, space technologies and intelligence, surveillance and reconnaissance solutions. Its offerings support military modernization efforts, helping it benefit from growing demand for advanced mission-critical technologies.

With defense spending increasing worldwide, both companies are positioned for continued growth. However, deciding which stock is stronger right now depends on comparing their individual strengths.

Tailwinds for RTXRTX is benefiting from strong defense demand, notable contract wins and continued technological progress, which are supporting its growth outlook and investor confidence.

In August 2026, Raytheon, an RTX business, secured a $22.9 billion contract to accelerate Tomahawk cruise missile production for the U.S. Navy. The multi-year deal supports the planned production ramp to more than 1,000 missiles annually, strengthening RTX’s revenue visibility.

Collins Aerospace also won a contract worth up to $472 million to provide engineering services for the modernization and sustainment of the CH-47 Chinook fleet. The contract includes avionics upgrades aimed at improving the aircraft’s capabilities and long-term mission readiness.

Moreover, Collins Aerospace completed altitude testing of its next-generation power and cooling system for the F-35, supporting future technology upgrades and the aircraft’s long-term performance.

Tailwinds for LHXL3Harris is benefiting from strong demand for advanced defense technologies, strategic investments and continued progress across its key programs, which are supporting its growth outlook.

In August 2026, L3Harris was selected by the government of Peru to provide its Viper Shield electronic warfare system for the country’s F-16 Block 70 aircraft program. The system is designed to protect aircraft against enemy radars, missiles and other electronic threats, while strengthening L3Harris’ presence in the global defense market.

The company also opened a new 50,000-square-foot maritime production facility in Providence following a $6 million investment. The facility will design and produce advanced undersea training systems for the U.S. Navy and allied forces.

Moreover, L3Harris completed a hot-fire test of its advanced solid rocket motor for the Missile Defense Agency’s Next Generation Interceptor program, marking further progress in the development of a system designed to strengthen U.S. homeland missile defense.

How Does the Zacks Consensus Estimate Compare for RTX & LHX?The Zacks Consensus Estimate for RTX’s 2026 sales and earnings per share (EPS) implies an improvement of 8.4% and 14.8%, respectively, from the year-ago reported figures. The stock’s annual bottom-line estimates have moved north over the past 60 days.

Image Source: Zacks Investment Research

The consensus estimate for LHX’s 2026 sales and EPS implies an improvement of 8.2% and 9.4%, respectively, from the year-ago reported figures. The stock’s 2027 bottom-line estimates have moved south over the past 60 days.

Image Source: Zacks Investment Research

Stock Price Performance: RTX & LHXIn the past year, RTX has outperformed LHX. While RTX’s shares surged 31.2%, LHX declined 5.3%.

Image Source: Zacks Investment Research

Valuation for RTX & LHXLHX is trading at a forward earnings multiple (P/E F12M) of 20.35, below RTX’s forward earnings multiple of 27.63.

Image Source: Zacks Investment Research

RTX & LHX’s ROICRTX’s Return on Invested Capital (ROIC) stands at 6.33% compared with 5.14% for L3Harris. This indicates that RTX currently has a slight advantage in capital efficiency, highlighting its stronger ability to generate returns from the capital invested in its business.

Final CallBoth RTX and L3Harris are well-positioned to benefit from rising defense spending and growing demand for advanced military technologies. However, RTX offers a more diversified business mix with exposure to both commercial aerospace and defense.

RTX also has stronger earnings growth expectations, better recent stock performance and a slightly higher ROIC than L3Harris.

RTX currently carries a Zacks Rank #2 (Buy), while LHX carries a Zacks Rank #3 (Hold). Given RTX’s diversified portfolio, strong growth outlook and better momentum, it stands out as the stronger choice right now.

You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.

Shares of RTX Corporation (NYSE:RTX – Get Free Report) have been given a consensus recommendation of “Moderate Buy” by the twenty-one research firms that are covering the company, MarketBeat Ratings reports. One analyst has rated the stock with a sell rating, five have assigned a hold rating, fourteen have given a buy rating and one has assigned a strong buy rating to the company. The average 12 month price target among brokers that have updated their coverage on the stock in the last year is $228.5882.

Several analysts recently weighed in on RTX shares. UBS Group increased their price target on RTX from $198.00 to $215.00 and gave the company a “neutral” rating in a report on Friday, July 24th. Weiss Ratings lowered shares of RTX from a “buy (b)” rating to a “buy (b-)” rating in a research note on Tuesday, August 11th. Dbs Bank upgraded shares of RTX from a “hold” rating to a “moderate buy” rating in a research report on Wednesday, June 10th. Jefferies Financial Group set a $250.00 target price on shares of RTX in a research note on Sunday, July 26th. Finally, Deutsche Bank Aktiengesellschaft reissued a “buy” rating and issued a $238.00 target price on shares of RTX in a research note on Monday, July 27th.

Check Out Our Latest Analysis on RTX

RTX Stock Up 0.8% Shares of NYSE:RTX opened at $211.93 on Thursday. The company has a market cap of $285.63 billion, a price-to-earnings ratio of 37.31, a PEG ratio of 2.50 and a beta of 0.29. RTX has a 12 month low of $150.61 and a 12 month high of $226.88. The company has a current ratio of 1.01, a quick ratio of 0.78 and a debt-to-equity ratio of 0.47. The company has a 50-day moving average price of $205.11 and a 200 day moving average price of $195.73. RTX (NYSE:RTX – Get Free Report) last issued its quarterly earnings data on Thursday, July 23rd. The company reported $1.89 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.66 by $0.23. The business had revenue of $24.71 billion for the quarter, compared to the consensus estimate of $22.89 billion. RTX had a return on equity of 13.99% and a net margin of 8.28%.The company’s quarterly revenue was up 14.5% compared to the same quarter last year. During the same period in the prior year, the business posted $1.56 earnings per share. RTX has set its FY 2026 guidance at 7.100-7.250 EPS. As a group, equities research analysts predict that RTX will post 7.22 earnings per share for the current year.

RTX Dividend Announcement The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 3rd. Investors of record on Friday, August 14th will be given a $0.73 dividend. This represents a $2.92 dividend on an annualized basis and a yield of 1.4%. The ex-dividend date of this dividend is Friday, August 14th. RTX’s dividend payout ratio is 51.41%.

Insiders Place Their Bets In other news, EVP Ramsaran Maharajh sold 13,655 shares of the stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $223.92, for a total value of $3,057,627.60. Following the sale, the executive vice president directly owned 13,184 shares in the company, valued at approximately $2,952,161.28. This represents a 50.88% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, VP Kevin G. Dasilva sold 2,250 shares of the firm’s stock in a transaction that occurred on Tuesday, July 28th. The stock was sold at an average price of $216.93, for a total value of $488,092.50. Following the sale, the vice president directly owned 20,099 shares of the company’s stock, valued at $4,360,076.07. This represents a 10.07% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 29,222 shares of company stock valued at $6,362,003 over the last 90 days. Insiders own 0.10% of the company’s stock.

Institutional Trading of RTX A number of hedge funds and other institutional investors have recently bought and sold shares of RTX. California State Teachers Retirement System grew its holdings in shares of RTX by 18,899.0% in the second quarter. California State Teachers Retirement System now owns 389,832,160 shares of the company’s stock worth $73,962,856,000 after purchasing an additional 387,780,302 shares during the last quarter. BlackRock Inc. purchased a new position in RTX in the 2nd quarter worth about $20,970,571,000. Norges Bank bought a new stake in RTX during the 4th quarter valued at about $3,167,626,000. Auto Owners Insurance Co lifted its holdings in RTX by 24,730.9% during the 4th quarter. Auto Owners Insurance Co now owns 10,102,956 shares of the company’s stock valued at $1,852,882,000 after buying an additional 10,062,269 shares in the last quarter. Finally, Bank of New York Mellon Corp purchased a new stake in RTX in the 2nd quarter valued at about $1,456,256,000. Hedge funds and other institutional investors own 86.50% of the company’s stock.

Trending Headlines about RTX Here are the key news stories impacting RTX this week:

Positive Sentiment: Raytheon, RTX’s defense unit, received a $22.9 billion U.S. military contract to accelerate Tomahawk missile production. The award supports multiyear revenue visibility and reflects the need to replenish depleted U.S. and allied stockpiles. Raytheon’s Missile Windfall: What the Navy’s Record Tomahawk Order Means for RTX Corporation Positive Sentiment: Recent analyst commentary highlights a 22% backlog increase to approximately $289 billion, strong defense demand and improving free cash flow. RTX’s latest quarterly results also showed revenue growth, earnings that exceeded expectations and particularly strong performance from Raytheon. RTX Stock Will Keep Rewarding Patient Investors Positive Sentiment: Collins Aerospace completed altitude testing of its Enhanced Power and Cooling System for the F-35. Successful testing advances a next-generation system that could support future F-35 upgrades and related aerospace revenue. Why Is RTX Testing Progress Important for Its Next Generation Defense Systems? Neutral Sentiment: RTX’s Blue Canyon Technologies introduced a new spacecraft mission-enablement product. The announcement reinforces RTX’s broader space and defense capabilities, although the near-term financial impact was not disclosed. RTX’s Blue Canyon Technologies Introduces New Spacecraft Mission Enabler Negative Sentiment: One analyst downgraded RTX, citing its premium valuation alongside rising commercial aerospace maintenance costs. The concerns are important because the stock trades at a high earnings multiple, leaving less room for execution setbacks. RTX Corporation: More Missiles and Higher Commercial Maintenance Trigger Premium Price Tag RTX Company Profile (Get Free Report)

RTX (NYSE: RTX) is a U.S.-based aerospace and defense company that designs, manufactures and services advanced systems for commercial, military and governmental customers worldwide. The company was created through the 2020 combination of Raytheon Company and United Technologies Corporation and later adopted the RTX name, positioning itself as a diversified provider across the aerospace and defense value chain.

RTX’s operations span a broad set of capabilities. Its commercial aerospace businesses include Pratt & Whitney aircraft engines and Collins Aerospace systems, which supply propulsion, avionics, aerostructures, interiors and integrated aircraft systems.

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The Aerospace group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has RTX (RTX - Free Report) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Aerospace peers, we might be able to answer that question.

RTX is a member of our Aerospace group, which includes 76 different companies and currently sits at #1 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. RTX is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for RTX's full-year earnings has moved 4.4% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Our latest available data shows that RTX has returned about 15.6% since the start of the calendar year. Meanwhile, stocks in the Aerospace group have lost about 1.2% on average. This means that RTX is outperforming the sector as a whole this year.

One other Aerospace stock that has outperformed the sector so far this year is Rolls-Royce Holdings PLC (RYCEY - Free Report) . The stock is up 32.1% year-to-date.

For Rolls-Royce Holdings PLC, the consensus EPS estimate for the current year has increased 14.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, RTX belongs to the Aerospace - Defense industry, a group that includes 39 individual stocks and currently sits at #98 in the Zacks Industry Rank. On average, this group has lost an average of 1.9% so far this year, meaning that RTX is performing better in terms of year-to-date returns.

In contrast, Rolls-Royce Holdings PLC falls under the Aerospace - Defense Equipment industry. Currently, this industry has 36 stocks and is ranked #37. Since the beginning of the year, the industry has moved +0.6%.

Investors with an interest in Aerospace stocks should continue to track RTX and Rolls-Royce Holdings PLC. These stocks will be looking to continue their solid performance.

The 2026 aerospace-and-defense scoreboard has separated cleanly across three widely owned names, and the individual leaders have beaten their own sector basket.

RTX's (RTX -1.12%) backlog is key to the investment case for the stock, because what's in the backlog and how it's growing are strong leading indicators of future growth. In a nutshell, investors want to see order growth feed into high-quality backlog growth, and then into higher-margin revenue growth through execution. As long as that's happening, investors can feel confident in the company's prospects.

I'll cut straight to the chase. RTX's backlog continues to grow amid surging orders, and this applies to both its commercial aerospace and defense businesses. To put the backlog into perspective, management's recently upgraded estimate for adjusted sales in 2026 is $95 billion to $96 billion.

Image source: Getty Images.

However, backlog growth isn't just about securing a few years of sales; ongoing order growth above sales growth will drive it. In addition, backlog growth helps de-risk the company from short-term economic weakness that might impact its earnings and cash flow -- a key argument for a company that needs to spend billions developing long-cycle solutions such as aircraft engines, aerospace systems, missiles, defense technology, space, and intelligence technologies.

Data source: Company presentations, Chart by author.

Fuelling RTX's long-term growth It's important to understand that RTX's commercial aerospace equipment backlog drives long-term growth in services through highly profitable aftermarket sales -- for example, aftermarket parts for Pratt & Whitney commercial engines on Airbus A320 planes. Also, Collins Aerospace's systems backlog leads to high-margin recurring revenue as the systems (commercial aerospace and defense) are utilized. Meanwhile, the defense backlog across RTX, Collins Aerospace, and Pratt & Whitney creates a steady stream of government-backed revenue.

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As such, backlog growth enhances earnings visibility, de-risks the businesses, and drives long-term earnings and cash flow growth tied to servicing a growing installed base of commercial aerospace and defense equipment. That said, RTX still has to execute on that backlog and ensure it's taking on profitable work. That's not always easy in the defense sector, where governments are pushing harder to obtain advantageous contracts.

Consequently, investors should always look for management's pronouncements on margin expansion when evaluating backlog growth, as the two ideally go hand in hand.

Key Takeaways RTX plans to raise annual Tomahawk production above 1,000 missiles under a seven-year contract.RTX delivered three times more Tomahawks in the first half of 2026 than in the comparable 2025 period.RTX is expanding its workforce, technology, supply chain and facilities to support higher production. RTX Corporation (RTX - Free Report) is significantly expanding its precision-strike manufacturing capabilities as its subsidiary Raytheon moves to accelerate Tomahawk cruise missile production. On Aug. 17, 2026, Raytheon was awarded a seven-year, $22.9 billion contract to support Tomahawk production for the U.S. Navy and allies. The award provides a long-term framework for increasing output while strengthening the company's position in the precision-strike market.

Under the agreement, Raytheon plans to raise annual Tomahawk production to more than 1,000 missiles and provide associated support. The company has already been increasing production, delivering three times more Tomahawks in the first half of 2026 than in the comparable period of 2025. The new contract provides additional visibility for continued production expansion.

RTX is also strengthening the industrial base supporting Tomahawk production. Raytheon plans to invest further in its workforce, technology, supply chain and facilities to amplify manufacturing capacity. The company is working with hundreds of small and mid-sized suppliers across the United States, allowing the production network to scale alongside higher missile requirements.

The multi-year award could provide RTX with greater production visibility while allowing Raytheon to expand manufacturing capacity around a major naval strike program. As the company boosts output and strengthens its supplier network, the Tomahawk program could become an increasingly important contributor to Raytheon's long-term defense growth.

Companies Expanding Precision-Strike ProductionRising demand for precision-strike capabilities is encouraging defense companies to expand missile production and related manufacturing capacity. Companies like Lockheed Martin Corporation (LMT - Free Report) and Northrop Grumman Corporation (NOC - Free Report) are also strengthening their positions across advanced weapons and defense systems.

Lockheed Martin develops precision-strike weapons and missile systems for U.S. and allied defense programs.

Northrop Grumman develops missile technologies, propulsion systems and other capabilities supporting advanced strike and defense programs.

Earnings Estimates for RTXThe Zacks Consensus Estimate for 2026 and 2027 earnings per share suggests year-over-year growth of 14.79% and 7.60%, respectively.

Image Source: Zacks Investment Research

RTX Stock Is Trading at a PremiumRTX is trading at a premium relative to the industry, with a forward 12-month price-to-sales of 2.97X compared with the industry average of 2.68X.

Image Source: Zacks Investment Research

RTX Stock Price PerformanceOver the past year, RTX shares have rallied 40.9% compared with the industry’s 6.2% growth.

Image Source: Zacks Investment Research

RTX’s Zacks RankRTX currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The industrial sector is riding several powerful spending cycles, and RTX (RTX +1.74%) sits right in the middle of two of them: aerospace and defense. Demand looks healthy across its businesses, and its huge backlog gives investors plenty of visibility into what's ahead.

That strength is also why the stock looks priced for a lot of good news. RTX is up about 45% over the past year and now trades just below its 52-week and all-time high of $227.

Image source: Getty Images.

So if you're trying to keep industrial exposure in your portfolio but want something that feels less fully valued, it may make sense to look beyond the usual defense bellwethers. Two interesting options are Vertiv (VRT -6.80%) and Quanta Services (PWR -3.62%). Both are tied to infrastructure spending driven by artificial intelligence (AI), and have the kind of momentum that can matter in this sector.

Vertiv: The data center cooling and power specialist Vertiv makes power and cooling infrastructure. Data centers generate huge amounts of heat, and hyperscalers desperately need good cooling so their billion-dollar AI investments don't go up in flames. With its deep expertise in thermal management, the company can capitalize on that opportunity.

But that's just part of the story. Are the numbers backing that up?

In the second quarter, the company generated $3.27 billion in total revenue, up 24% year over year, driven by AI data center sales across the Americas and Asia Pacific regions. Adjusted diluted earnings per share (EPS) grew 60% to $1.52.

On the back of those impressive results, management raised its full-year revenue guidance to $14 billion, representing a 37% year-over-year gain, and adjusted EPS guidance to $6.70 at the midpoint, up 60%.

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As for the stock, Vertiv is up 122% over the last 52 weeks. You might think it's hypocritical for me to say RTX, with its 45% growth, is already too high when I'm now talking about a triple-digit performer, but the numbers aren't the only consideration here. Wall Street analysts rate the stock a "strong buy," while RTX sits at a "moderate buy."

Second, Vertiv stock is trading nowhere near its 52-week high, let alone its high target price set by analysts. I can't say the same for RTX.

So while Vertiv has already enjoyed a huge run, its strong fundamentals, rising guidance, and favorable analyst sentiment make me more amenable to its growth story.

Quanta Services: The grid builder that AI data centers depend on Then there's Quanta Services, another industrial company benefiting from the infrastructure spending required to support AI. It specializes in building and upgrading electrical transmission and distribution infrastructure, essentially helping move power from where it's generated to where it's needed.

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And like Vertiv, the numbers back up the opportunity. Quanta's second-quarter consolidated revenue grew 41% to reach $9.6 billion, while adjusted diluted EPS went up 71% to $4.24. The company also reported a record backlog of $53.4 billion.

And management reports that it has "significantly increased 2026 financial expectations across all metrics." That's something potential investors love to see. To seal the deal, Quanta also has a "strong buy" rating from Wall Street.

RTX is still strong, but here's why I'd take Vertiv or Quanta Despite my praise for these two industrial stocks, I want to be clear: I don't think RTX is a bad investment. If anything, the fact that RTX trades at a lower valuation multiple (39x on a price-to-earnings basis) than both Vertiv (66x) and Quanta (78x) makes the stock an even more compelling alternative.

However, Vertiv and Quanta trade at higher valuations because both companies are benefiting from the early stages of what could be a huge multiyear AI infrastructure boom. On the other hand, RTX is already a more established business with much of its current growth tied to a defense and aerospace cycle that the market has clearly recognized.

When deciding, it comes down to paying less for a more mature growth story versus paying more for what I believe could be a longer runway.

RTX Today

$223.76 +2.12 (+0.96%)

As of 12:26 PM Eastern

This is a fair market value price provided by Massive. Learn more.

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Global defense priorities are experiencing a structural reset as military agencies replenish precision munitions and modernize aging fleets. For investors, this process converts multi-year government commitments into compounding shareholder returns. When rising geopolitical budgets cross paths with expanding commercial airline travel, aerospace sector leaders gain a powerful operational tailwind.

RTX Corporation NYSE: RTX is directly at the center of this convergence, operating both tier-one defense franchises and market-leading commercial aviation systems. By linking long-duration defense programs with recurring aftermarket jet maintenance, RTX Corporation offers investors rare visibility across the physical aerospace supply chain, paving a clear runway for durable earnings expansion.

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7-Year Navy Tomahawk Ramp Secures Multi-Year BacklogA decisive catalyst arrived when RTX Corporation secured a landmark $22.9 billion agreement with the U.S. Navy for Tomahawk cruise missiles. Structured around a seven-year production ramp, the agreement establishes revenue visibility extending into the 2030s. The contract addresses critical inventory replenishment, reflecting high-priority strategic procurement across maritime and land-strike capabilities.

This multi-billion-dollar award follows a recent $745 million order for advanced missile-defense interceptors, reinforcing the defense portfolio inside the Raytheon business unit. While peers such as Lockheed Martin Corporation NYSE: LMT and General Dynamics Corporation NYSE: GD maintain deep order books, RTX Corporation benefits from long-duration manufacturing cycles and predictable procurement lines. By locking in volume commitments across multiple years, RTX Corporation stabilizes factory utilization, giving management a clear runway to optimize parts sourcing and navigate lingering supply chain friction.

Commercial Flight Hours Meet Munitions DemandThe operational foundation underpinning this backlog was evident in the recent Q2 2026 earnings release. RTX Corporation reported adjusted earnings per share (EPS) of $1.89, outpacing consensus estimates of $1.66 by 23 cents. Net sales expanded 14.5% year-over-year (YOY) to approximately $24.71 billion, beating Wall Street expectations of $22.89 billion.

Powering these top-line gains is the balance between defense readiness and commercial aftermarket activity. While Raytheon services government contracts, Pratt & Whitney and Collins Aerospace capture commercial aviation demand through maintenance, repair, and overhaul (MRO) services. High commercial flight hours drive steady demand for engine overhauls, avionics upgrades, and component replacements. These high-margin aftermarket services help protect overall operating margins from inflationary cost pressures.

Management translated this operational strength into an upward revision of financial guidance for the full 2026 fiscal year. The executive team raised adjusted EPS projections to a range of $7.10 to $7.25, topping prior consensus estimates of $6.91. Full-year net sales are now projected between $95.0 billion and $96.0 billion, highlighting durable demand across both defense platforms and commercial aviation programs.

Calibrating the Instruments: Valuation, Debt, and 5 Years of Dividend HikesWith shares trading around $222 and delivering a year-to-date gain of roughly 21%, investors should evaluate valuation against forward earnings power. RTX Corporation trades at a trailing price-to-earnings (P/E) ratio of about 39.1 and a forward P/E of roughly 30.7. While these multiples sit at a premium relative to traditional industrial averages, forward earnings are projected to expand by nearly 7.5% next year toward $7.76 per share, supporting a price/earnings-to-growth (PEG) ratio of 2.65.

Balance sheet leverage remains conservative. A debt-to-equity ratio of 0.47 leaves ample financial headroom without overleveraging the business structure. This financial stability reinforces capital returns, evidenced by five consecutive years of dividend increases. RTX Corporation pays an annualized dividend of $2.92 per share, paid in quarterly installments of 73 cents, translating to a dividend yield of around 1.32%. Crucially, RTX’s dividend appears well covered, requiring roughly half of trailing earnings and about one-third of cash flow. This conservative payout structure leaves ample cash to reinvest in advanced research, facility expansion, and automated tooling.

Institutional Backing Counters Working Capital Bottlenecks83rd Percentile

Moderate Buy

2.6% Upside

Healthy

Strong

1.16 Selling Shares

7.48%

See Full Analysis

Institutional sentiment reflects high conviction in the long-term defense pipeline. Wall Street maintains a Moderate Buy consensus rating among 21 covering analysts, with an average 12-month price target of $228.59 and a high estimate of $250.

Institutional ownership accounts for roughly 86.5% of total shares, driven by more than $43.3 billion in gross institutional inflows over the past 12 months from major asset managers, including Vanguard Group Inc. and BlackRock Inc. Short interest remains subdued at approximately 1.34% of the public float, requiring about 3.1 days to cover. This low short exposure highlights muted bearish speculation relative to sector peers such as The Boeing Company NYSE: BA, where short interest hovers near 1.96%.

Even with strong institutional support, working capital constraints require active monitoring. A quick ratio of 0.78 and a current ratio of 1.01 reflect capital tied up in component inventory and work-in-progress assemblies needed to ramp up missile lines.

Mission Briefing: Capitalizing on the Aerospace Defense CycleSecuring the $22.9 billion Tomahawk contract provides RTX Corporation with dependable revenue visibility through 2033, while commercial aerospace recovery supplies steady high-margin aftermarket cash flow. Although a low beta of 0.29 suggests steady compounding rather than rapid speculative momentum, the underlying fundamentals support durable portfolio defense.

Market participants looking to establish long-term exposure might consider using temporary valuation pullbacks to initiate or build positions. Long-term shareholders holding RTX Corporation can remain comfortable collecting a well-funded 1.32% dividend yield, allowing the multi-year defense production cycle and commercial aerospace expansion to compound value over time.

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Should You Invest $1,000 in RTX Right Now?Before you consider RTX, you'll want to hear this.

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Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.

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What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.

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As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

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Stock to Watch: RTX (RTX - Free Report) In July 2023, Raytheon Technologies was renamed RTX Corporation. In April 2020, Raytheon Technologies was formed as a result of the merger between United Technologies and Raytheon Company. Based in Waltham, MA, RTX has emerged as an aerospace and defense company, providing advanced systems and services for commercial, military and government customers worldwide. The company currently operates through three business segments.

RTX is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

Additionally, the company could be a top pick for growth investors. RTX has a Growth Style Score of B, forecasting year-over-year earnings growth of 14.8% for the current fiscal year.

Eight analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.31 to $7.22 per share. RTX also boasts an average earnings surprise of +14.2%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, RTX should be on investors' short list.

Contract accelerates production of critical precision-strike weapon

, /PRNewswire/ -- Raytheon, an RTX (NYSE: RTX) business, will dramatically accelerate the production of Tomahawk cruise missiles for the U.S. Navy over the multi-year period under the terms of an unprecedented $22.9 billion contract, awarded as part of the Department of War's Arsenal of Freedom.

This contract follows the landmark agreements between Raytheon and the Department of War and supports the annual production ramp to more than 1,000 Tomahawk missiles and associated support, ensuring a stable, predictable supply for the Navy and allies.

"Tomahawk is the Navy's most important strike weapon, able to target hostile forces hundreds of miles away without ever risking the lives of our sailors," said Raytheon President Phil Jasper.  "We are making significant investments in our workforce, technology, supply chain and facilities to dramatically boost production capacity and meet surging demand."

RTX has invested heavily in recent years to ramp production of Tomahawk and other critical munitions, delivering three times more Tomahawks in the first half of 2026 compared to the first half of 2025. With this contract, RTX will increase capacity and collaborate closely with hundreds of small and mid-sized suppliers nationwide to rapidly scale output to meet long-term needs.

Tomahawk cruise missiles remain one of the U.S. military's most proven and versatile long range strike capabilities. With a decades‑long record of operational performance, Tomahawk provides military leaders with reliable, flexible options against high value targets from a variety of launch platforms.

About Raytheon
Raytheon, an RTX business, is a leading provider of defense solutions to help the U.S. government, our allies and partners defend their national sovereignty and ensure their security. For more than 100 years, Raytheon has developed new technologies and enhanced existing capabilities in integrated air and missile defense, smart weapons, missiles, advanced sensors and radars, interceptors, space-based systems, hypersonics and missile defense across land, air, sea and space.

About RTX
With more than 180,000 global employees, we push the limits of technology and science to redefine how we connect and protect our world. With industry-leading capabilities, we advance aviation, engineer integrated defense systems for operational success, and develop next-generation technology solutions and manufacturing to help global customers address their most critical challenges. The company, with 2025 sales of more than $88 billion, is headquartered in Arlington, Virginia.

For questions or to schedule an interview, please contact [email protected].

SOURCE RTX

Global Retirement Partners LLC acquired a new stake in shares of RTX Corporation (NYSE: RTX) in the undefined quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm acquired 73,028 shares of the company's stock, valued at approximately $13,856,000. A number of

Bridgewater Advisors Inc. purchased a new stake in shares of RTX Corporation (NYSE: RTX) in the undefined quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor purchased 9,272 shares of the company's stock, valued at approximately $2,009,000. A number of other hedge funds and other

The Pentagon reached an agreement with Boeing and RTX to increase production of components used for advanced interceptor missiles. Boeing and RTX both rose about 1%.

The Pentagon on ​Friday announced framework ‌agreements with Boeing and ​RTX to ​increase production of ⁠components of ​SM-3 Block ​IIA and SM-3 Block IB munitions.

Posted by Defense World Staff on Aug 13th, 2026

Ballast Inc. increased its position in RTX Corporation (NYSE:RTX – Free Report) by 27.3% in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 14,050 shares of the company’s stock after acquiring an additional 3,015 shares during the quarter. Ballast Inc.’s holdings in RTX were worth $2,666,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in RTX. Navalign LLC bought a new stake in RTX during the fourth quarter valued at about $25,000. Commonwealth Retirement Investments LLC bought a new position in shares of RTX in the fourth quarter worth about $26,000. Core Wealth Advisors LLC purchased a new stake in shares of RTX during the fourth quarter worth about $31,000. 1 North Wealth Services LLC grew its position in shares of RTX by 456.7% during the fourth quarter. 1 North Wealth Services LLC now owns 167 shares of the company’s stock worth $31,000 after purchasing an additional 137 shares in the last quarter. Finally, Evergreen Advisors LLC bought a new stake in RTX during the 1st quarter valued at approximately $31,000. Institutional investors own 86.50% of the company’s stock.

Analyst Ratings Changes A number of research analysts recently commented on the company. Royal Bank Of Canada boosted their price target on RTX from $230.00 to $250.00 and gave the stock an “outperform” rating in a report on Friday, July 24th. Susquehanna increased their price objective on shares of RTX from $235.00 to $245.00 and gave the company a “positive” rating in a report on Friday, July 24th. Robert W. Baird set a $240.00 price objective on shares of RTX in a research report on Friday, July 24th. Weiss Ratings downgraded shares of RTX from a “buy (b)” rating to a “buy (b-)” rating in a report on Tuesday. Finally, Argus set a $245.00 target price on shares of RTX in a research report on Thursday, July 30th. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, RTX presently has a consensus rating of “Moderate Buy” and an average price target of $228.59.

Get Our Latest Research Report on RTX

RTX Stock Down 0.6% NYSE RTX opened at $222.59 on Thursday. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.78 and a current ratio of 1.01. The company has a market capitalization of $300.00 billion, a P/E ratio of 39.19, a P/E/G ratio of 2.67 and a beta of 0.29. RTX Corporation has a one year low of $150.61 and a one year high of $226.88. The stock has a 50 day moving average price of $198.37 and a 200-day moving average price of $194.49.

RTX (NYSE:RTX – Get Free Report) last announced its quarterly earnings results on Thursday, July 23rd. The company reported $1.89 earnings per share for the quarter, topping the consensus estimate of $1.66 by $0.23. The company had revenue of $24.71 billion for the quarter, compared to analysts’ expectations of $22.89 billion. RTX had a net margin of 8.28% and a return on equity of 13.99%. RTX’s quarterly revenue was up 14.5% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.56 earnings per share. RTX has set its FY 2026 guidance at 7.100-7.250 EPS. As a group, equities analysts predict that RTX Corporation will post 7.22 EPS for the current fiscal year.

RTX Announces Dividend The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 3rd. Shareholders of record on Friday, August 14th will be paid a $0.73 dividend. This represents a $2.92 dividend on an annualized basis and a dividend yield of 1.3%. The ex-dividend date of this dividend is Friday, August 14th. RTX’s dividend payout ratio (DPR) is presently 51.41%.

Key Headlines Impacting RTX Here are the key news stories impacting RTX this week:

Positive Sentiment: The Pentagon’s push to rebuild depleted missile stockpiles could generate additional orders for RTX’s missile and defense businesses. Reports cite shortages following the recent U.S.-Iran conflict and production bottlenecks, creating a potentially significant replenishment opportunity for RTX and its defense peers. Defense ETFs to Buy as Pentagon Pushes to Boost Missile Stockpiles Positive Sentiment: RTX’s Collins Aerospace won a U.S. Army contract worth up to $472 million to provide engineering services for modernization and sustainment of the CH-47 Chinook helicopter fleet. The award strengthens the company’s long-term defense backlog and supports recurring aftermarket revenue. RTX’s Collins Aerospace to support modernization of U.S. Army’s Chinook helicopters Positive Sentiment: Erste Group raised its 2026 EPS forecast to $7.25 from $7.20, slightly above the broader consensus estimate of $7.22. The increase reinforces expectations for continued earnings growth, though the bank maintained a Hold rating. Positive Sentiment: Options traders are reportedly leaning bullish on RTX, while recent defense contract wins, technology milestones and higher earnings estimates have helped the shares outperform the broader industry. RTX Outperforms Industry in the Past Month: How to Play the Stock? Neutral Sentiment: RTX recently reached a new 52-week high and trades well above its 50-day and 200-day moving averages, indicating strong momentum but also leaving the stock more vulnerable to profit-taking. Negative Sentiment: At roughly 39 times earnings, RTX carries a premium valuation. That pricing raises the bar for future contract wins and earnings growth, potentially limiting gains if defense spending or execution falls short of expectations. Insider Transactions at RTX In related news, insider Troy D. Brunk sold 8,557 shares of the stock in a transaction dated Friday, July 24th. The shares were sold at an average price of $210.29, for a total value of $1,799,451.53. Following the completion of the transaction, the insider owned 8,809 shares of the company’s stock, valued at approximately $1,852,444.61. This trade represents a 49.27% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Kevin G. Dasilva sold 2,250 shares of RTX stock in a transaction dated Tuesday, July 28th. The stock was sold at an average price of $216.93, for a total value of $488,092.50. Following the completion of the transaction, the vice president owned 20,099 shares of the company’s stock, valued at approximately $4,360,076.07. This represents a 10.07% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 15,567 shares of company stock worth $3,304,375. Insiders own 0.10% of the company’s stock.

RTX Company Profile (Free Report)

RTX (NYSE: RTX) is a U.S.-based aerospace and defense company that designs, manufactures and services advanced systems for commercial, military and governmental customers worldwide. The company was created through the 2020 combination of Raytheon Company and United Technologies Corporation and later adopted the RTX name, positioning itself as a diversified provider across the aerospace and defense value chain.

RTX’s operations span a broad set of capabilities. Its commercial aerospace businesses include Pratt & Whitney aircraft engines and Collins Aerospace systems, which supply propulsion, avionics, aerostructures, interiors and integrated aircraft systems.

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Key Takeaways RTX gained 14.1% in a month, outpacing its industry and the sector.New missile defense, unmanned undersea and radar milestones support RTX's defense growth.RTX's 2026 sales and earnings estimates imply growth of 8.4% and 14.6%, respectively. RTX Corporation (RTX - Free Report) stock has surged 14.1% in the past month, outperforming the Zacks Aerospace-Defense industry’s growth of 8.2%. It also outperformed the broader Zacks Aerospace sector’s growth of 6.6% and the S&P 500’s return of 2.9% in the same time frame.

Image Source: Zacks Investment Research

Other industry players, such as General Dynamics (GD - Free Report) and Lockheed Martin (LMT - Free Report) , have delivered a similar performance in the past month. Shares of GD and LMT have gained 6.2% and 15.9%, respectively, in the said period.

Given RTX’s strong recent performance, some investors may be tempted to buy the stock immediately. However, it is important to assess whether the company’s fundamentals can support sustainable long-term growth or whether the recent rally may be short-lived. Understanding RTX’s growth prospects and key risks will be important for making a well-informed investment decision.

Tailwinds for RTXRTX continues to strengthen its aerospace and defense business through new contract wins and advancements in defense technology. In August 2026, its Raytheon business secured a $745 million contract from the Missile Defense Agency for the production and sustainment of Standard Missile-3 Block IIA interceptors. The award reflects continued demand for advanced missile defense systems and will help RTX expand production capacity and improve delivery timelines.

RTX’s strong backlog also provides good visibility into future revenues. The company ended the second quarter of 2026 with a record backlog of $289 billion, up 22% year over year, including $119 billion in defense orders. RTX received $43 billion in new awards during the quarter, with nearly $20 billion coming from Raytheon. Strong demand for Patriot, AMRAAM and other defense systems, along with rising international orders, provides multi-year revenue visibility.

Also in August, Raytheon and Composite Energy Technologies successfully demonstrated the undersea launch capabilities of HADALUS, a new low-cost, long-endurance unmanned undersea vehicle. The demonstration for the U.S. Navy highlights progress in developing unmanned systems capable of performing multiple missions, including detection, reacquisition and engagement.

Moreover, Raytheon delivered and installed the first SPY-6(V)4 radar array at the U.S. Navy’s Surface Combat Systems Center in Virginia. The milestone supports the modernization of Flight IIA Destroyers and the Navy’s SPY-6 radar backfit program. Testing is expected to continue through mid-2028 before the radar is installed on the USS Pinckney.

These developments highlight RTX’s focus on expanding its defense portfolio, strengthening its position in missile defense and naval systems, and building a strong pipeline of future business.

Estimates for RTX’s 2026 Sales and EarningsThe Zacks Consensus Estimate for RTX’s 2026 sales implies year-over-year growth of 8.4%. The consensus estimate for its 2026 earnings indicates a year-over-year increase of 14.6%.

Image Source: Zacks Investment Research

The stock’s annual bottom-line estimates have moved north over the past 60 days.

Image Source: Zacks Investment Research

RTX’s ValuationIn terms of valuation, RTX’s forward 12-month price-to-sales (P/S) is 3.02X, a premium to the industry average of 2.67X. This suggests that investors will be paying a higher price than the company's expected sales growth compared with its industry average.

Image Source: Zacks Investment Research

General Dynamics and Lockheed Martin are trading at a discount in comparison with RTX. GD’s forward 12-month price-to-sales is 1.87X, while LMT’s forward 12-month price-to-sales is 1.68X.

Liquidity Position of RTXRTX has a current ratio of 1.01. The ratio, being more than one, indicates that RTX possesses sufficient capital to pay off its short-term debt obligations.

Its industry peers, General Dynamics and Lockheed Martin, also maintain current ratios above one. GD has a current ratio of 1.44, while LMT holds 1.19.

What Should an Investor Do Now?RTX continues to benefit from rising earnings estimates, solid long-term growth prospects and a strong liquidity position. Backed by these strengths and its expanding presence across the aerospace and defense markets, the stock remains a compelling choice for investors seeking long-term growth.

RTX currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Boeing Co (NYSE:BA) and Airbus SE (OTC:EADSY) have no shortage of customers waiting for new planes. The harder part is building enough of them.

Airbus delivered 418 aircraft through July, including 67 in July alone, but still needs to average roughly 90 deliveries a month for the rest of 2026 to reach its annual target of about 870 aircraft. Boeing is also working through a massive commercial backlog as it ramps production.

That puts an unusual spotlight on the companies supplying the engines.

For investors, GE Aerospace (NYSE:GE) and RTX Corp (NYSE:RTX) are two of the biggest names to watch as the aerospace industry tries to turn aircraft orders into actual deliveries.

GE Is Ramping Engine DeliveriesGE Aerospace entered the second half of the year with a backlog worth more than $210 billion, including commercial engines, services and other businesses.

More importantly, GE said total engine deliveries rose 31% in the first half of 2026, with deliveries of its LEAP engines up 41%. The LEAP powers Boeing’s 737 MAX and Airbus’ A320neo family through GE’s CFM International joint venture with Safran. GE also said material received from priority suppliers increased at a double-digit rate in the second quarter.

That suggests GE is making progress on one of the industry’s biggest problems: getting enough components into factories to increase output.

Demand isn’t slowing, either. GE recently announced a deal with Copa Airlines for up to 120 LEAP-1B engines, adding another large order to an already substantial commercial pipeline.

RTX Has a Different Engine OpportunityRTX’s Pratt & Whitney is also seeing strong demand, particularly for its GTF engine, which powers Airbus A320neo-family aircraft.

BOC Aviation recently ordered up to 220 GTF engines for as many as 110 Airbus A320neo-family aircraft. Pratt & Whitney also secured another A320neo-family selection from aircraft lessor Jackson Square Aviation.

But Pratt & Whitney’s story also illustrates the industry’s challenge.

GTF engine issues have contributed to aircraft being taken out of service for inspections and repairs, creating additional pressure on the supply chain. RTX’s second-quarter results showed Pratt & Whitney’s commercial aftermarket sales — revenue from maintaining and repairing engines already in service — jumped 25%, even as commercial original-equipment sales fell 8%.

That is important for investors because aerospace suppliers can benefit from both sides of the cycle: new engines when aircraft production rises and maintenance when older aircraft stay in service longer.

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The Bottleneck Could Become the OpportunityThe aerospace supply chain is still far from fixed. Honeywell Aerospace Inc. (NASDAQ:HONA), for example, recently cut its 2026 outlook because supply constraints were making it difficult to meet demand and forcing the company to prioritize deliveries to Boeing and Airbus.

But that is also what makes GE and RTX interesting.

Boeing and Airbus need to increase aircraft deliveries. Airlines need those planes because existing fleets are staying in service longer. And every additional aircraft eventually requires engines, spare parts and years of maintenance.

The winners may not be limited to the companies building the planes.

As Boeing and Airbus race to turn enormous backlogs into deliveries, GE and RTX are racing to make sure the engines — and the aftermarket support behind them — are ready.

Read Next

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Contract strengthens U.S. and allied readiness against evolving ballistic missile threats

, /PRNewswire/ -- Raytheon, an RTX (NYSE: RTX) business, has received a $745 million contract from the Missile Defense Agency for the production and sustainment of Standard Missile-3 Block IIA (SM‑3 IIA) interceptors.

"SM-3 Block IIA is a cornerstone of regional defense, giving the U.S. and allied partners greater reach, accuracy and confidence against evolving threats," said Barbara Borgonovi, president of Naval Power at Raytheon. "We've made sustained investments in our production lines and processes, which are allowing us to increase capacity and deliver these critical munitions to our customers more quickly."

SM-3 IIA is a cooperatively developed program between Japanese industry and Raytheon. The missile features a larger rocket motor and an enhanced kinetic warhead from its predecessors, allowing it to engage threats faster and protect larger regions from short- to intermediate-range ballistic missile threats.

RTX has made significant investments to expand capacity and accelerate production of the Standard Missile Family. This includes a recent $115 million expansion of its Alabama missile integration facility, which will increase the facility's integration and delivery capacity by over 50%. Production under this contract will be completed at Raytheon facilities in Tucson, Ariz., and Huntsville, Ala.

Raytheon is actively hiring to support this critical program. Opportunities are available for emerging talent, experienced professionals, and veterans. Discover open roles on our website and apply today.

About Raytheon
Raytheon, an RTX business, is a leading provider of defense solutions to help the U.S. government, our allies and partners defend their national sovereignty and ensure their security. For more than 100 years, Raytheon has developed new technologies and enhanced existing capabilities in integrated air and missile defense, smart weapons, missiles, advanced sensors and radars, interceptors, space-based systems, hypersonics and missile defense across land, air, sea and space.

About RTX
With more than 180,000 global employees, we push the limits of technology and science to redefine how we connect and protect our world. With industry-leading capabilities, we advance aviation, engineer integrated defense systems for operational success, and develop next-generation technology solutions and manufacturing to help global customers address their most critical challenges. The company, with 2025 sales of more than $88 billion, is headquartered in Arlington, Virginia.

For questions or to schedule an interview, please contact [email protected].

SOURCE RTX

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.

Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at RTX (RTX - Free Report) , a company that currently holds a Momentum Style Score of A. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.

It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. RTX currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.

You can see the current list of Zacks #1 Rank Stocks here >>>

Set to Beat the Market? In order to see if RTX is a promising momentum pick, let's examine some Momentum Style elements to see if this an aerospace and defense company holds up.

Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.

For RTX, shares are up 1.14% over the past week while the Zacks Aerospace - Defense industry is up 0.3% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 14.06% compares favorably with the industry's 5.56% performance as well.

While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics -- such as performance over the past three months or year -- can be useful as well. Over the past quarter, shares of RTX have risen 24.82%, and are up 42.74% in the last year. In comparison, the S&P 500 has only moved 6.65% and 23.84%, respectively.

Investors should also take note of RTX's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now RTX is averaging 5,129,493 shares for the last 20 days..

Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with RTX.

Over the past two months, 8 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost RTX's consensus estimate, increasing from $6.91 to $7.21 in the past 60 days. Looking at the next fiscal year, 8 estimates have moved upwards while there have been no downward revisions in the same time period.

Bottom LineGiven these factors, it shouldn't be surprising that RTX is a #2 (Buy) stock and boasts a Momentum Score of A. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep RTX on your short list.