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RTX Outperforms Industry in the Past 6 Months: How to Play the Stock?
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Key Takeaways
RTX outperformed its industry over six months despite a 0.7% share-price decline.
Defense demand, capacity expansion and major contracts support RTX's long-term growth prospects.
RTX's rising earnings estimates and solid liquidity are offset by a premium industry valuation.
RTX Corporation (RTX - Free Report) stock has lost 0.7% in the past six months, outperforming the Zacks Aerospace-Defense industry’s decline of 15.8%. It also outperformed the broader Zacks Aerospace sector’s decline of 15.9%. However, it underperformed the S&P 500’s return of 11.6% in the same time frame.
Image Source: Zacks Investment Research
Other industry players, such as General Dynamics (GD - Free Report) and Embraer (EMBJ - Free Report) , have delivered a similar performance in the past six months. Shares of GD and EMBJ have gained 1.3% and 3.8%, respectively, in the said period.
RTX’s stronger performance than the broader aerospace and defense industry, along with gains by key peers, may make the stock attractive to investors. However, it is important to assess whether RTX’s strong fundamentals and growth prospects can support sustainable long-term gains. Evaluating the company’s growth drivers, earnings outlook and key risks will be important for determining whether the stock has further upside.
Tailwinds for RTX
RTX continues to strengthen its aerospace and defense business through higher production capacity, major contract wins and advances in defense technology. In August 2026, RTX completed a 17,000-square-foot expansion of its Forest, MS, manufacturing facility, backed by a $50 million investment. The expansion will increase production capacity for electronic warfare and radar systems and is expected to create 100 high-skilled jobs by 2028.
RTX is also increasing production of Tomahawk cruise missiles following a $22.9 billion multi-year contract from the U.S. Navy. The contract supports plans to increase annual production to more than 1,000 Tomahawk missiles and related support. RTX is investing in its workforce, technology, supply chain and facilities to meet rising demand from the U.S. Navy and its allies.
In addition, RTX continues to develop new technologies for the F-35 program. In August 2026, RTX completed altitude testing of its next-generation Enhanced Power and Cooling System (EPACS). The system is designed to provide greater cooling capacity and support future upgrades, helping maintain the F-35’s performance throughout its service life.
These developments highlight RTX’s focus on expanding production, supporting major defense programs and developing advanced technologies. Strong demand for missile systems, radar, electronic warfare and F-35 technologies could support RTX’s long-term defense growth and strengthen its position in the global aerospace and defense market.
Estimates for RTX’s 2026 Sales and Earnings
The 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 14.8%.
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 Valuation
In terms of valuation, RTX’s forward 12-month price-to-sales (P/S) is 2.76X, a premium to the industry average of 2.38X. 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 Embraer are trading at a discount in comparison with RTX. GD’s forward 12-month price-to-sales is 1.74X, while EMBJ’s forward 12-month price-to-sales is 1.42X.
Liquidity Position of RTX
RTX 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 Embraer, also maintain current ratios above one. GD has a current ratio of 1.44, while EMBJ also holds 1.44.
What Should an Investor do Now?
RTX’s strong defense demand, rising earnings estimates and solid liquidity position support its long-term growth prospects. However, the stock trades at a premium valuation compared with the industry and key peers, which could limit near-term upside.
Given this balance of strengths and valuation concerns, existing shareholders may consider holding the stock, while new investors may prefer to wait for a better entry point. Monitoring RTX’s earnings growth, valuation and execution will be important before taking a fresh position.
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Image: Bigstock
RTX Outperforms Industry in the Past 6 Months: How to Play the Stock?
Key Takeaways
RTX Corporation (RTX - Free Report) stock has lost 0.7% in the past six months, outperforming the Zacks Aerospace-Defense industry’s decline of 15.8%. It also outperformed the broader Zacks Aerospace sector’s decline of 15.9%. However, it underperformed the S&P 500’s return of 11.6% in the same time frame.
Image Source: Zacks Investment Research
Other industry players, such as General Dynamics (GD - Free Report) and Embraer (EMBJ - Free Report) , have delivered a similar performance in the past six months. Shares of GD and EMBJ have gained 1.3% and 3.8%, respectively, in the said period.
RTX’s stronger performance than the broader aerospace and defense industry, along with gains by key peers, may make the stock attractive to investors. However, it is important to assess whether RTX’s strong fundamentals and growth prospects can support sustainable long-term gains. Evaluating the company’s growth drivers, earnings outlook and key risks will be important for determining whether the stock has further upside.
Tailwinds for RTX
RTX continues to strengthen its aerospace and defense business through higher production capacity, major contract wins and advances in defense technology. In August 2026, RTX completed a 17,000-square-foot expansion of its Forest, MS, manufacturing facility, backed by a $50 million investment. The expansion will increase production capacity for electronic warfare and radar systems and is expected to create 100 high-skilled jobs by 2028.
RTX is also increasing production of Tomahawk cruise missiles following a $22.9 billion multi-year contract from the U.S. Navy. The contract supports plans to increase annual production to more than 1,000 Tomahawk missiles and related support. RTX is investing in its workforce, technology, supply chain and facilities to meet rising demand from the U.S. Navy and its allies.
In addition, RTX continues to develop new technologies for the F-35 program. In August 2026, RTX completed altitude testing of its next-generation Enhanced Power and Cooling System (EPACS). The system is designed to provide greater cooling capacity and support future upgrades, helping maintain the F-35’s performance throughout its service life.
These developments highlight RTX’s focus on expanding production, supporting major defense programs and developing advanced technologies. Strong demand for missile systems, radar, electronic warfare and F-35 technologies could support RTX’s long-term defense growth and strengthen its position in the global aerospace and defense market.
Estimates for RTX’s 2026 Sales and Earnings
The 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 14.8%.
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 Valuation
In terms of valuation, RTX’s forward 12-month price-to-sales (P/S) is 2.76X, a premium to the industry average of 2.38X. 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 Embraer are trading at a discount in comparison with RTX. GD’s forward 12-month price-to-sales is 1.74X, while EMBJ’s forward 12-month price-to-sales is 1.42X.
Liquidity Position of RTX
RTX 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 Embraer, also maintain current ratios above one. GD has a current ratio of 1.44, while EMBJ also holds 1.44.
What Should an Investor do Now?
RTX’s strong defense demand, rising earnings estimates and solid liquidity position support its long-term growth prospects. However, the stock trades at a premium valuation compared with the industry and key peers, which could limit near-term upside.
Given this balance of strengths and valuation concerns, existing shareholders may consider holding the stock, while new investors may prefer to wait for a better entry point. Monitoring RTX’s earnings growth, valuation and execution will be important before taking a fresh 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.