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RTX Outperforms Industry in the Past 3 Months: How to Play the Stock?
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Key Takeaways
RTX beat its industry over 3 months despite supply-chain pressures and premium valuation concerns.
RTX won a 120-radar order and delivered a key sensor for a U.S. Space Force satellite program.
RTX plans a $100M factory investment to expand production for commercial and military engines.
RTX Corporation (RTX - Free Report) stock has lost 11.3% in the past three months, underperforming both the Zacks Aerospace-Defense industry’s decline of 10.9% and the broader Zacks Aerospace sector’s decline of 8.8%. It also came below the S&P 500’s return of 6.6% in the same time frame.
Image Source: Zacks Investment Research
Other industry players, such as The Boeing Company (BA - Free Report) and General Dynamics (GD - Free Report) , have also delivered a similar performance in the past three months. Shares of BA and GD have lost 6.1% and 3.9%, respectively, in the said period.
RTX has recently underperformed both its industry and the broader aerospace-defense sector, with the stock declining overall. While some investors may see its relative performance against certain peers as encouraging, it is important to evaluate whether the company’s fundamentals and long-term growth drivers can support a recovery. Investors should also consider risks such as supply-chain issues and market uncertainty before making an investment decision.
Tailwinds for RTX
RTX’s recent performance has been supported by several strategic developments, which appear to have boosted investor confidence.
In May 2026, RTX secured a contract from Blue Raven to produce 120 SharpSight radars, marking the largest order so far for the new surveillance system. The radar is designed for both manned and unmanned platforms and supports missions such as border security, coastal monitoring, search and rescue, and long-range surveillance.
In April 2026, RTX delivered its second sensor to Lockheed Martin for the U.S. Space Force’s Next-Generation Overhead Persistent Infrared satellite program. The advanced sensors are designed to improve missile warning and tracking capabilities, including the detection of hypersonic threats and other advanced weapon systems.
During the same month, RTX announced a $100 million investment to expand production capacity and add advanced manufacturing capabilities at one of its facilities. The investment is expected to support growing global demand for the company’s commercial and military engine programs.
For defense contractors like RTX, a steady flow of defense-related contracts, technological advancements and continued investments in manufacturing capabilities serve as key long-term growth drivers.
Estimates for RTX’s 2026 Sales and Earnings
The Zacks Consensus Estimate for RTX’s 2026 sales implies year-over-year growth of 5.7%. The consensus estimate for its 2026 earnings indicates a year-over-year increase of 9.9%.
Image Source: Zacks Investment Research
The upward revision in its 2026 and 2027 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-sales (P/s) is 2.48X, a discount to the industry average of 2.49X. This suggests that investors will be paying a lower price than the company's expected sales growth compared with its industry average.
Image Source: Zacks Investment Research
Boeing and General Dynamics are trading at a discount in comparison with RTX. BA’s forward 12-month price-to-sales is 1.74X, while GD’s forward 12-month price-to-sales is 1.70X.
Liquidity Position of RTX
RTX has a current ratio of 1.02. The ratio, being more than one, indicates that RTX possesses sufficient capital to pay off its short-term debt obligations.
Its industry peers, Boeing and General Dynamics, also maintain current ratios above one. BA has a current ratio of 1.18, while GD holds 1.38.
Risks to Take Note of Before Choosing RTX
RTX continues to face supply-chain challenges, including shortages of parts and components, inflationary pressures and labor constraints. These issues have affected production schedules, increased costs and delayed deliveries in recent years.
Supply-chain disruptions across the aerospace industry also remain a concern. Persistent bottlenecks may impact aircraft production and global air traffic growth, which could eventually weigh on demand for RTX’s jet engines.
What Should an Investor do Now?
Although RTX continues to benefit from rising earnings estimates, solid long-term growth prospects and a strong liquidity position, the stock is currently trading at a premium valuation. Moreover, ongoing supply-chain challenges and global trade uncertainties may create near-term pressure on performance. Considering these factors, existing investors may prefer to hold the stock, while new investors could wait for a more attractive entry point.
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Image: Bigstock
RTX Outperforms Industry in the Past 3 Months: How to Play the Stock?
Key Takeaways
RTX Corporation (RTX - Free Report) stock has lost 11.3% in the past three months, underperforming both the Zacks Aerospace-Defense industry’s decline of 10.9% and the broader Zacks Aerospace sector’s decline of 8.8%. It also came below the S&P 500’s return of 6.6% in the same time frame.
Image Source: Zacks Investment Research
Other industry players, such as The Boeing Company (BA - Free Report) and General Dynamics (GD - Free Report) , have also delivered a similar performance in the past three months. Shares of BA and GD have lost 6.1% and 3.9%, respectively, in the said period.
RTX has recently underperformed both its industry and the broader aerospace-defense sector, with the stock declining overall. While some investors may see its relative performance against certain peers as encouraging, it is important to evaluate whether the company’s fundamentals and long-term growth drivers can support a recovery. Investors should also consider risks such as supply-chain issues and market uncertainty before making an investment decision.
Tailwinds for RTX
RTX’s recent performance has been supported by several strategic developments, which appear to have boosted investor confidence.
In May 2026, RTX secured a contract from Blue Raven to produce 120 SharpSight radars, marking the largest order so far for the new surveillance system. The radar is designed for both manned and unmanned platforms and supports missions such as border security, coastal monitoring, search and rescue, and long-range surveillance.
In April 2026, RTX delivered its second sensor to Lockheed Martin for the U.S. Space Force’s Next-Generation Overhead Persistent Infrared satellite program. The advanced sensors are designed to improve missile warning and tracking capabilities, including the detection of hypersonic threats and other advanced weapon systems.
During the same month, RTX announced a $100 million investment to expand production capacity and add advanced manufacturing capabilities at one of its facilities. The investment is expected to support growing global demand for the company’s commercial and military engine programs.
For defense contractors like RTX, a steady flow of defense-related contracts, technological advancements and continued investments in manufacturing capabilities serve as key long-term growth drivers.
Estimates for RTX’s 2026 Sales and Earnings
The Zacks Consensus Estimate for RTX’s 2026 sales implies year-over-year growth of 5.7%. The consensus estimate for its 2026 earnings indicates a year-over-year increase of 9.9%.
Image Source: Zacks Investment Research
The upward revision in its 2026 and 2027 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-sales (P/s) is 2.48X, a discount to the industry average of 2.49X. This suggests that investors will be paying a lower price than the company's expected sales growth compared with its industry average.
Image Source: Zacks Investment Research
Boeing and General Dynamics are trading at a discount in comparison with RTX. BA’s forward 12-month price-to-sales is 1.74X, while GD’s forward 12-month price-to-sales is 1.70X.
Liquidity Position of RTX
RTX has a current ratio of 1.02. The ratio, being more than one, indicates that RTX possesses sufficient capital to pay off its short-term debt obligations.
Its industry peers, Boeing and General Dynamics, also maintain current ratios above one. BA has a current ratio of 1.18, while GD holds 1.38.
Risks to Take Note of Before Choosing RTX
RTX continues to face supply-chain challenges, including shortages of parts and components, inflationary pressures and labor constraints. These issues have affected production schedules, increased costs and delayed deliveries in recent years.
Supply-chain disruptions across the aerospace industry also remain a concern. Persistent bottlenecks may impact aircraft production and global air traffic growth, which could eventually weigh on demand for RTX’s jet engines.
What Should an Investor do Now?
Although RTX continues to benefit from rising earnings estimates, solid long-term growth prospects and a strong liquidity position, the stock is currently trading at a premium valuation. Moreover, ongoing supply-chain challenges and global trade uncertainties may create near-term pressure on performance. Considering these factors, existing investors may prefer to hold the stock, while new investors could wait for a more attractive entry point.
RTX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.