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RTX Outperforms Industry in the Past 3 Months: Should You Buy?
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Key Takeaways
RTX outperformed its industry over three months despite a 6% stock decline.
Major SM-6 and AMRAAM contracts are supporting RTX's defense production growth.
RTX's healthy liquidity supports growth, while its premium valuation may limit near-term upside.
RTX Corporation (RTX - Free Report) stock has lost 6% in the past three months, outperforming the Zacks Aerospace-Defense industry’s decline of 13.2%. It also outperformed the broader Zacks Aerospace sector’s decline of 14.5%. However, it underperformed the S&P 500’s return of 3.1% in the same time frame.
Image Source: Zacks Investment Research
Other industry players, such as Virgin Galactic (SPCE - Free Report) and Embraer (EMBJ - Free Report) , have delivered a similar performance in the past three months. Shares of SPCE and EMBJ have gained 16.2% and 18.9%, respectively, in the said period.
RTX’s stronger performance compared with the broader aerospace and defense industry, along with gains among key peers, could make the stock appealing to investors. However, investors should assess whether RTX’s solid fundamentals and growth prospects can sustain long-term gains. Evaluating its growth drivers, earnings outlook and key risks will be crucial in determining the stock’s potential for further upside.
Tailwinds for RTX
RTX continues to strengthen its aerospace and defense operations through large defense contracts, higher missile production and expanded manufacturing capacity. In October 2026, Raytheon secured a five-year contract, with two additional option years, valued at up to $24.4 billion for Standard Missile-6 (SM-6) interceptors. The agreement is expected to increase the availability of the critical missile, which supports both offensive strike and missile defense missions for the U.S. Navy.
RTX is also ramping up production of AMRAAM missiles under a five-year contract with two option years, valued at up to $20.7 billion. The agreement supports plans to produce at least 1,900 AMRAAM missiles annually, allowing Raytheon to meet rising demand from the U.S. military and its allies.
Meanwhile, Collins Aerospace is expanding its West Des Moines, IA, manufacturing facility by 14,000 square feet through a multi-million-dollar investment. The expansion will increase production capacity for advanced fuel distribution systems, including components and spare parts, while supporting maintenance, repair and overhaul services. The facility currently ships more than 25,000 engine nozzles each month and serves both commercial and military platforms.
These developments underscore RTX’s focus on expanding production capacity, securing major defense programs and strengthening its manufacturing footprint. Growing demand for SM-6 and AMRAAM missiles, along with increased capacity at Collins Aerospace, could provide meaningful support to RTX’s long-term growth and reinforce 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 remained the same 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 2.45X, a premium to the industry average of 2.11X. This suggests that investors will be paying a higher price for the company's expected sales growth compared with its industry average.
Image Source: Zacks Investment Research
Virgin Galactic and Embraer are trading at a discount in comparison with RTX. SPCE’s forward 12-month price-to-sales is 2.09X, while EMBJ’s forward 12-month price-to-sales is 1.47X.
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, Virgin Galactic and Embraer, also maintain current ratios above one. SPCE has a current ratio of 1.62, while EMBJ also holds 1.44.
What Should an Investor Do Now?
RTX’s strong defense demand and healthy liquidity position provide a solid foundation for long-term growth. However, the stock’s premium valuation relative to the industry and key peers may limit its near-term upside potential.
Considering these strengths alongside valuation concerns, existing shareholders may consider holding the stock, while prospective investors could wait for a more attractive entry point. Tracking RTX’s earnings growth, valuation and execution will remain important when evaluating a new investment.
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RTX Outperforms Industry in the Past 3 Months: Should You Buy?
Key Takeaways
RTX Corporation (RTX - Free Report) stock has lost 6% in the past three months, outperforming the Zacks Aerospace-Defense industry’s decline of 13.2%. It also outperformed the broader Zacks Aerospace sector’s decline of 14.5%. However, it underperformed the S&P 500’s return of 3.1% in the same time frame.
Image Source: Zacks Investment Research
Other industry players, such as Virgin Galactic (SPCE - Free Report) and Embraer (EMBJ - Free Report) , have delivered a similar performance in the past three months. Shares of SPCE and EMBJ have gained 16.2% and 18.9%, respectively, in the said period.
RTX’s stronger performance compared with the broader aerospace and defense industry, along with gains among key peers, could make the stock appealing to investors. However, investors should assess whether RTX’s solid fundamentals and growth prospects can sustain long-term gains. Evaluating its growth drivers, earnings outlook and key risks will be crucial in determining the stock’s potential for further upside.
Tailwinds for RTX
RTX continues to strengthen its aerospace and defense operations through large defense contracts, higher missile production and expanded manufacturing capacity. In October 2026, Raytheon secured a five-year contract, with two additional option years, valued at up to $24.4 billion for Standard Missile-6 (SM-6) interceptors. The agreement is expected to increase the availability of the critical missile, which supports both offensive strike and missile defense missions for the U.S. Navy.
RTX is also ramping up production of AMRAAM missiles under a five-year contract with two option years, valued at up to $20.7 billion. The agreement supports plans to produce at least 1,900 AMRAAM missiles annually, allowing Raytheon to meet rising demand from the U.S. military and its allies.
Meanwhile, Collins Aerospace is expanding its West Des Moines, IA, manufacturing facility by 14,000 square feet through a multi-million-dollar investment. The expansion will increase production capacity for advanced fuel distribution systems, including components and spare parts, while supporting maintenance, repair and overhaul services. The facility currently ships more than 25,000 engine nozzles each month and serves both commercial and military platforms.
These developments underscore RTX’s focus on expanding production capacity, securing major defense programs and strengthening its manufacturing footprint. Growing demand for SM-6 and AMRAAM missiles, along with increased capacity at Collins Aerospace, could provide meaningful support to RTX’s long-term growth and reinforce 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 remained the same 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 2.45X, a premium to the industry average of 2.11X. This suggests that investors will be paying a higher price for the company's expected sales growth compared with its industry average.
Image Source: Zacks Investment Research
Virgin Galactic and Embraer are trading at a discount in comparison with RTX. SPCE’s forward 12-month price-to-sales is 2.09X, while EMBJ’s forward 12-month price-to-sales is 1.47X.
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, Virgin Galactic and Embraer, also maintain current ratios above one. SPCE has a current ratio of 1.62, while EMBJ also holds 1.44.
What Should an Investor Do Now?
RTX’s strong defense demand and healthy liquidity position provide a solid foundation for long-term growth. However, the stock’s premium valuation relative to the industry and key peers may limit its near-term upside potential.
Considering these strengths alongside valuation concerns, existing shareholders may consider holding the stock, while prospective investors could wait for a more attractive entry point. Tracking RTX’s earnings growth, valuation and execution will remain important when evaluating a new investment.
RTX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.