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RTX Outperforms Industry in the Past Year: Should You Buy?
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Key Takeaways
RTX has outperformed the aerospace and defense industry and sector over the past year.
RTX's Q3 2026 adjusted EPS rose 32.9%, while revenues increased 11.1% to $24.97 billion.
RTX's 2026 sales and earnings are expected to grow 8.8% and 22.9%, respectively, with estimates rising.
RTX Corporation (RTX - Free Report) stock has surged 11% in the past year, outperforming the Zacks Aerospace-Defense industry’s decline of 15.3%. It also outperformed the broader Zacks Aerospace sector’s decline of 12.5% and the S&P 500’s return of 9.3% 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 year. Shares of GD and EMBJ have gained 5.1% and 29.5%, 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 advancements in missile technology, next-generation defense capabilities and expanded aftermarket services. In the third quarter of 2026, the company reported adjusted earnings per share of $2.26, up 32.9% year over year, while revenues increased 11.1% to $24.97 billion. Both metrics surpassed their respective Zacks Consensus Estimate, supported by higher commercial aftermarket and defense demand.
In November 2026, Raytheon successfully completed the third flight test of its DeepStrike JR3 solution for the U.S. Army's Joint Reduced Range Rocket program. Designed to replace the Army's Reduced Range Practice Rocket, the system demonstrated key performance attributes, including range, accuracy, trajectory and launch pod reusability. The successful test reinforces its readiness to address the Army's growing training requirements.
Meanwhile, Collins Aerospace received a boost to its commercial aftermarket business as Air Europa extended its exclusive Boeing 787 nacelle maintenance agreement through 2037 in October. The agreement covers thrust reverser and nacelle services and is expected to improve fleet reliability, optimize maintenance planning and reduce unscheduled downtime.
These developments highlight RTX's progress across defense technology and commercial aerospace aftermarket services. Strong quarterly performance, advancements in missile systems and long-term maintenance agreements could support sustained 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 8.8%. The consensus estimate for its 2026 earnings indicates a year-over-year increase of 22.9%.
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 2.62X, a premium to the industry average of 2.18X. 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
General Dynamics and Embraer are trading at a discount in comparison with RTX. GD’s forward 12-month price-to-sales is 1.70X, while EMBJ’s forward 12-month price-to-sales is 1.60X.
Liquidity Position of RTX
RTX has a current ratio of 1.05. 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 1.43, while EMBJ also holds 1.44.
What Should an Investor Do Now?
RTX’s strong share price performance, favorable earnings outlook and continued growth in defense and commercial aerospace markets support its investment appeal. Rising earnings estimates and an adequate liquidity position further highlight the company’s solid fundamentals and ability to meet its short-term obligations.
Although RTX trades at a premium to the industry and key peers, its improving earnings prospects and strong business momentum remain encouraging. The company’s growth opportunities across defense technology and commercial aerospace aftermarket services support a positive investment outlook, making the stock worth considering for investors.
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RTX Outperforms Industry in the Past Year: Should You Buy?
Key Takeaways
RTX Corporation (RTX - Free Report) stock has surged 11% in the past year, outperforming the Zacks Aerospace-Defense industry’s decline of 15.3%. It also outperformed the broader Zacks Aerospace sector’s decline of 12.5% and the S&P 500’s return of 9.3% 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 year. Shares of GD and EMBJ have gained 5.1% and 29.5%, 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 advancements in missile technology, next-generation defense capabilities and expanded aftermarket services. In the third quarter of 2026, the company reported adjusted earnings per share of $2.26, up 32.9% year over year, while revenues increased 11.1% to $24.97 billion. Both metrics surpassed their respective Zacks Consensus Estimate, supported by higher commercial aftermarket and defense demand.
In November 2026, Raytheon successfully completed the third flight test of its DeepStrike JR3 solution for the U.S. Army's Joint Reduced Range Rocket program. Designed to replace the Army's Reduced Range Practice Rocket, the system demonstrated key performance attributes, including range, accuracy, trajectory and launch pod reusability. The successful test reinforces its readiness to address the Army's growing training requirements.
Meanwhile, Collins Aerospace received a boost to its commercial aftermarket business as Air Europa extended its exclusive Boeing 787 nacelle maintenance agreement through 2037 in October. The agreement covers thrust reverser and nacelle services and is expected to improve fleet reliability, optimize maintenance planning and reduce unscheduled downtime.
These developments highlight RTX's progress across defense technology and commercial aerospace aftermarket services. Strong quarterly performance, advancements in missile systems and long-term maintenance agreements could support sustained 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 8.8%. The consensus estimate for its 2026 earnings indicates a year-over-year increase of 22.9%.
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 2.62X, a premium to the industry average of 2.18X. 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
General Dynamics and Embraer are trading at a discount in comparison with RTX. GD’s forward 12-month price-to-sales is 1.70X, while EMBJ’s forward 12-month price-to-sales is 1.60X.
Liquidity Position of RTX
RTX has a current ratio of 1.05. 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 1.43, while EMBJ also holds 1.44.
What Should an Investor Do Now?
RTX’s strong share price performance, favorable earnings outlook and continued growth in defense and commercial aerospace markets support its investment appeal. Rising earnings estimates and an adequate liquidity position further highlight the company’s solid fundamentals and ability to meet its short-term obligations.
Although RTX trades at a premium to the industry and key peers, its improving earnings prospects and strong business momentum remain encouraging. The company’s growth opportunities across defense technology and commercial aerospace aftermarket services support a positive investment outlook, making the stock worth considering for investors.
RTX currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.