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RTX Corporation (RTX), headquartered in Arlington, Virginia, provides systems and services for commercial, military, and government customers in the aerospace and defense industries. Valued at $157.1 billion by market cap, RTX is the world’s largest aerospace and defense company that offers avionics systems, aviation systems, communications and navigation equipment, interior and exterior aircraft lighting, aircraft seating, environmental control systems, flight control systems, and engine components.
Shares of this aerospace and defense giant have outperformed the broader market considerably over the past year. RTX has gained 43.8% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 32.7%. In 2024, RTX stock is up 41.4%, surpassing the SPX’s 21.2% rise on a YTD basis.
Zooming in further, RTX’s outperformance looks more pronounced compared to the iShares U.S. Aerospace & Defense ETF (ITA). The exchange-traded fund has gained about 29.2% over the past year. Moreover, RTX’s gains on a YTD basis outshine the ETF’s 15.7% returns over the same time frame.
RTX is thriving thanks to its strong presence in commercial aerospace and defense sectors, with a long aftermarket tail and growing demand. The successful execution of the GTF inspections program and improving defense margins are driving the company's performance. While missile demand has boosted the stock price, the company's sustainable growth, cash flow, and capital returns continue to support its success.
On Oct. 22, RTX shares closed down marginally after reporting its Q3 results. Its revenue was $20.1 billion, beating analyst estimates of $19.8 billion. The company’s adjusted EPS of $1.45 exceeded analyst estimates of $1.34.
For the current fiscal year, ending in December, analysts expect RTX’s EPS to grow 9.9% to $5.56 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 22 analysts covering RTX stock, the consensus is a “Moderate Buy.” That’s based on six “Strong Buy” ratings, 15 “Holds,” and one “Strong Sell.”
The configuration has been fairly stable over the past three months.
On Oct. 29, Barclays PLC (BCS) analyst David Strauss kept an “Equal Weight” rating and raised the firm’s price target to $130, implying a potential upside of 9.3% from current levels.
The mean price target of $131.81 represents a 10.8% premium to RTX’s current price levels. The Street-high price target of $157 suggests an ambitious upside potential of 32%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
