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RTX Outperforms Industry in the Past 6 Months: Should You Buy?
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Key Takeaways
RTX gained 3.9% in six months, beating its industry but trailing the sector.
RTX secured defense contracts and advanced missile and communication technologies in May 2026.
RTX's 2026 sales and earnings estimates point to growth, despite supply-chain risks.
RTX Corporation (RTX - Free Report) stock has surged 3.9% in the past six months, outperforming the Zacks Aerospace-Defense industry’s decline of 3.1%. However, it underperformed the broader Zacks Aerospace sector’s growth of 2.9% and the S&P 500’s return of 11.1% in the same time frame.
Image Source: Zacks Investment Research
Other industry players, such as The Boeing Company (BA - Free Report) and Lockheed Martin (LMT - Free Report) , have delivered a similar performance in the past six months. Shares of BA and LMT have gained 10.7% and 15.6%, respectively, in the said period.
Although RTX has outperformed its industry recently, the stock has underperformed both the broader sector and the S&P 500. This may encourage some investors to view the relative strength as a positive sign, but it remains important to assess whether the company’s fundamentals and growth drivers can support a sustained recovery. Evaluating RTX’s long-term prospects, along with the potential risks, is essential before making an investment decision.
Tailwinds for RTX
RTX’s recent momentum has also been supported by several strategic developments, which appear to have increased investor confidence.
In May 2026, the Javelin Joint Venture, a partnership between Raytheon and Lockheed Martin, delivered the first Lightweight Command Launch Units to the U.S. Army. The new launcher is designed to work with all current, past and future Javelin missile variants and will replace the older launch system.
In the same month, Raytheon, together with Northrop Grumman, received a phase two contract from DARPA to continue developing a new solid rocket motor technology. The system is designed to adjust thrust based on mission needs, making it more flexible and suitable for multiple defense applications.
Moreover, RTX’s BBN Technologies demonstrated a self-healing communication system funded by the Air Force Research Laboratory. The system is designed to maintain secure data flow for combat operations even when communication networks are disrupted or unavailable by automatically selecting the best available connection.
For defense companies like RTX, steady contract wins, new technology development and continued innovation remain important 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 2.44X, a discount to the industry average of 2.54X. 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 Lockheed Martin are trading at a discount in comparison with RTX. BA’s forward 12-month price-to-sales is 1.72X, while LMT’s forward 12-month price-to-sales is 1.48X.
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 Lockheed Martin, also maintain current ratios above one. BA has a current ratio of 1.18, while LMT holds 1.14.
Risks to Take Note of Before Choosing RTX
RTX continues to face supply-chain headwinds, including shortages of key parts and components, inflationary pressures and labor-related challenges. These factors have affected production timelines, raised costs and delayed deliveries in recent years.
Broader supply-chain disruptions across the aerospace industry also remain a concern. Ongoing bottlenecks could slow aircraft production and limit global air traffic growth, which may eventually affect demand for RTX’s jet engines.
What Should an Investor do Now?
RTX continues to benefit from rising earnings estimates, solid long-term growth prospects, a discounted valuation and a strong liquidity position. However, 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 6 Months: Should You Buy?
Key Takeaways
RTX Corporation (RTX - Free Report) stock has surged 3.9% in the past six months, outperforming the Zacks Aerospace-Defense industry’s decline of 3.1%. However, it underperformed the broader Zacks Aerospace sector’s growth of 2.9% and the S&P 500’s return of 11.1% in the same time frame.
Image Source: Zacks Investment Research
Other industry players, such as The Boeing Company (BA - Free Report) and Lockheed Martin (LMT - Free Report) , have delivered a similar performance in the past six months. Shares of BA and LMT have gained 10.7% and 15.6%, respectively, in the said period.
Although RTX has outperformed its industry recently, the stock has underperformed both the broader sector and the S&P 500. This may encourage some investors to view the relative strength as a positive sign, but it remains important to assess whether the company’s fundamentals and growth drivers can support a sustained recovery. Evaluating RTX’s long-term prospects, along with the potential risks, is essential before making an investment decision.
Tailwinds for RTX
RTX’s recent momentum has also been supported by several strategic developments, which appear to have increased investor confidence.
In May 2026, the Javelin Joint Venture, a partnership between Raytheon and Lockheed Martin, delivered the first Lightweight Command Launch Units to the U.S. Army. The new launcher is designed to work with all current, past and future Javelin missile variants and will replace the older launch system.
In the same month, Raytheon, together with Northrop Grumman, received a phase two contract from DARPA to continue developing a new solid rocket motor technology. The system is designed to adjust thrust based on mission needs, making it more flexible and suitable for multiple defense applications.
Moreover, RTX’s BBN Technologies demonstrated a self-healing communication system funded by the Air Force Research Laboratory. The system is designed to maintain secure data flow for combat operations even when communication networks are disrupted or unavailable by automatically selecting the best available connection.
For defense companies like RTX, steady contract wins, new technology development and continued innovation remain important 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 2.44X, a discount to the industry average of 2.54X. 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 Lockheed Martin are trading at a discount in comparison with RTX. BA’s forward 12-month price-to-sales is 1.72X, while LMT’s forward 12-month price-to-sales is 1.48X.
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 Lockheed Martin, also maintain current ratios above one. BA has a current ratio of 1.18, while LMT holds 1.14.
Risks to Take Note of Before Choosing RTX
RTX continues to face supply-chain headwinds, including shortages of key parts and components, inflationary pressures and labor-related challenges. These factors have affected production timelines, raised costs and delayed deliveries in recent years.
Broader supply-chain disruptions across the aerospace industry also remain a concern. Ongoing bottlenecks could slow aircraft production and limit global air traffic growth, which may eventually affect demand for RTX’s jet engines.
What Should an Investor do Now?
RTX continues to benefit from rising earnings estimates, solid long-term growth prospects, a discounted valuation and a strong liquidity position. However, 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.