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RTX (RTX) Laps the Stock Market: Here's Why

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RTX (RTX - Free Report) ended the recent trading session at $193.85, demonstrating a +2.84% change from the preceding day's closing price. This change outpaced the S&P 500's 0.16% gain on the day. Meanwhile, the Dow gained 0.17%, and the Nasdaq, a tech-heavy index, added 0.26%.

Shares of the an aerospace and defense company have appreciated by 5.51% over the course of the past month, underperforming the Aerospace sector's gain of 10.85%, and outperforming the S&P 500's gain of 1.89%.

The upcoming earnings release of RTX will be of great interest to investors. The company's earnings report is expected on January 27, 2026. In that report, analysts expect RTX to post earnings of $1.45 per share. This would mark a year-over-year decline of 5.84%. Meanwhile, our latest consensus estimate is calling for revenue of $22.74 billion, up 5.18% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.19 per share and revenue of $87.07 billion, indicating changes of +8.03% and 0%, respectively, compared to the previous year.

It is also important to note the recent changes to analyst estimates for RTX. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.27% lower within the past month. At present, RTX boasts a Zacks Rank of #4 (Sell).

In terms of valuation, RTX is presently being traded at a Forward P/E ratio of 28.06. This valuation marks a premium compared to its industry average Forward P/E of 23.56.

It is also worth noting that RTX currently has a PEG ratio of 2.74. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Aerospace - Defense industry stood at 1.87 at the close of the market yesterday.

The Aerospace - Defense industry is part of the Aerospace sector. With its current Zacks Industry Rank of 104, this industry ranks in the top 43% of all industries, numbering over 250.

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

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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