We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
RTX Outperforms Industry in the Past 6 Months: How to Play the Stock?
Read MoreHide Full Article
Key Takeaways
RTX shares jumped 30.2% in six months, beating the aerospace-defense industry and broader aerospace sector.
RTX secured DARPA work and Singapore Airshow deals, strengthening defense and commercial aerospace businesses.
RTX's 2026 sales and earnings estimates signal growth, but tariffs and global trade tensions pose risks.
RTX Corporation (RTX - Free Report) stock has risen 30.2% in the past six months, outperforming both the Zacks Aerospace-Defense industry’s growth of 8.7% and the broader Zacks Aerospace sector’s gain of 9.4%. It also came above the S&P 500’s return of 13.6% in the same time frame.
Image Source: Zacks Investment Research
Other industry players, such as Huntington Ingalls Industries (HII - Free Report) and General Dynamics (GD - Free Report) , have also delivered a similar stellar performance in the past six months. Shares of HII and GD have risen 58.6% and 13.2%, respectively, in the said period.
Given RTX’s strong recent performance, some investors may be inclined to buy the stock. However, it is important to assess whether the company’s fundamentals can support long-term growth or if the recent rally may be temporary. Understanding RTX’s growth outlook and potential risks is essential for making an informed investment decision.
Tailwinds for RTX
RTX’s recent share strength appears to be supported by several positive business developments across its defense and commercial aerospace segments.
In February 2026, RTX was selected by the Defense Advanced Research Projects Agency (DARPA) to develop an advanced sensing and targeting system. The system is designed to help protect commercial shipping and naval logistics vessels from emerging threats such as unmanned surface vehicles, highlighting RTX’s continued focus on advanced defense capabilities.
RTX also signed multiple memoranda of understanding with the Singapore Economic Development Board at the Singapore Airshow. These agreements build on a prior deal announced in July 2025 and reinforce RTX’s long-term commitment to Singapore as a key hub for aerospace manufacturing, maintenance repair and overhaul, and engineering activities.
Additionally, RTX signed two FlightSense renewal agreements with All Nippon Airways at the Singapore Airshow. These agreements strengthen RTX’s commercial aerospace services business and reflect steady demand from major airline customers.
Overall, these developments point to a healthy flow of defense and commercial aerospace opportunities, supporting RTX’s growth outlook and helping sustain investor confidence.
Estimates for RTX’s 2026 Sales and Earnings
The Zacks Consensus Estimate for RTX’s 2026 sales implies year-over-year growth of 5.2%. The consensus estimate for its 2026 earnings indicates a year-over-year increase of 8%.
Image Source: Zacks Investment Research
The upward revision in its 2026 earnings over the past 60 days suggests investors’ increasing confidence in this stock’s earnings generation capabilities.
Image Source: Zacks Investment Research
RTX’s Valuation
In terms of valuation, RTX’s forward 12-month price-to-earnings (P/E) is 29.76X, a discount to the industry average of 32.30X. This suggests that investors will be paying a lower price than the company's expected earnings growth compared with its industry average.
Image Source: Zacks Investment Research
Huntington and General Dynamics are trading at a discount in comparison with RTX. HII’s forward 12-month price-to-earnings is 24.48X, while GD’s forward 12-month price-to-earnings is 21.53X.
Liquidity Position of RTX
RTX has a current ratio of 1.03. The ratio, being more than one, indicates that RTX possesses sufficient capital to pay off its short-term debt obligations.
Image Source: Zacks Investment Research
Risks to Take Note of Before Choosing RTX
U.S. executive orders issued in February 2025 imposed tariffs on imports, leading to retaliatory measures from China, the EU and Canada. These trade tensions could impact global business and affect defense companies like RTX, Huntington and General Dynamics, which have large international exposure.
Final Call
Given RTX’s attractive valuation and improving earnings outlook, the stock appears fairly valued with stable growth potential. However, ongoing global trade uncertainties present near-term risks that could impact performance. Existing investors may consider holding the stock, while prospective investors may prefer to wait for greater clarity before initiating a position.
Image: Bigstock
RTX Outperforms Industry in the Past 6 Months: How to Play the Stock?
Key Takeaways
RTX Corporation (RTX - Free Report) stock has risen 30.2% in the past six months, outperforming both the Zacks Aerospace-Defense industry’s growth of 8.7% and the broader Zacks Aerospace sector’s gain of 9.4%. It also came above the S&P 500’s return of 13.6% in the same time frame.
Image Source: Zacks Investment Research
Other industry players, such as Huntington Ingalls Industries (HII - Free Report) and General Dynamics (GD - Free Report) , have also delivered a similar stellar performance in the past six months. Shares of HII and GD have risen 58.6% and 13.2%, respectively, in the said period.
Given RTX’s strong recent performance, some investors may be inclined to buy the stock. However, it is important to assess whether the company’s fundamentals can support long-term growth or if the recent rally may be temporary. Understanding RTX’s growth outlook and potential risks is essential for making an informed investment decision.
Tailwinds for RTX
RTX’s recent share strength appears to be supported by several positive business developments across its defense and commercial aerospace segments.
In February 2026, RTX was selected by the Defense Advanced Research Projects Agency (DARPA) to develop an advanced sensing and targeting system. The system is designed to help protect commercial shipping and naval logistics vessels from emerging threats such as unmanned surface vehicles, highlighting RTX’s continued focus on advanced defense capabilities.
RTX also signed multiple memoranda of understanding with the Singapore Economic Development Board at the Singapore Airshow. These agreements build on a prior deal announced in July 2025 and reinforce RTX’s long-term commitment to Singapore as a key hub for aerospace manufacturing, maintenance repair and overhaul, and engineering activities.
Additionally, RTX signed two FlightSense renewal agreements with All Nippon Airways at the Singapore Airshow. These agreements strengthen RTX’s commercial aerospace services business and reflect steady demand from major airline customers.
Overall, these developments point to a healthy flow of defense and commercial aerospace opportunities, supporting RTX’s growth outlook and helping sustain investor confidence.
Estimates for RTX’s 2026 Sales and Earnings
The Zacks Consensus Estimate for RTX’s 2026 sales implies year-over-year growth of 5.2%. The consensus estimate for its 2026 earnings indicates a year-over-year increase of 8%.
Image Source: Zacks Investment Research
The upward revision in its 2026 earnings over the past 60 days suggests investors’ increasing confidence in this stock’s earnings generation capabilities.
Image Source: Zacks Investment Research
RTX’s Valuation
In terms of valuation, RTX’s forward 12-month price-to-earnings (P/E) is 29.76X, a discount to the industry average of 32.30X. This suggests that investors will be paying a lower price than the company's expected earnings growth compared with its industry average.
Image Source: Zacks Investment Research
Huntington and General Dynamics are trading at a discount in comparison with RTX. HII’s forward 12-month price-to-earnings is 24.48X, while GD’s forward 12-month price-to-earnings is 21.53X.
Liquidity Position of RTX
RTX has a current ratio of 1.03. The ratio, being more than one, indicates that RTX possesses sufficient capital to pay off its short-term debt obligations.
Image Source: Zacks Investment Research
Risks to Take Note of Before Choosing RTX
U.S. executive orders issued in February 2025 imposed tariffs on imports, leading to retaliatory measures from China, the EU and Canada. These trade tensions could impact global business and affect defense companies like RTX, Huntington and General Dynamics, which have large international exposure.
Final Call
Given RTX’s attractive valuation and improving earnings outlook, the stock appears fairly valued with stable growth potential. However, ongoing global trade uncertainties present near-term risks that could impact performance. Existing investors may consider holding the stock, while prospective investors may prefer to wait for greater clarity before initiating a position.
RTX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.