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Arlington, Virginia-based RTX Corporation (RTX), previously known as Raytheon Technologies, is a prominent provider of engineering and production services to aerospace and defense companies. Valued at $143.73 billion by market cap, it researches, develops, manufactures, and services a diverse portfolio of advanced systems and technologies for both commercial and military applications. Competing fiercely with other defense giants, one of RTX's main rivals is Lockheed Martin Corporation (LMT), which also boasts a strong presence in aerospace, defense, and security.
Companies worth $10 billion or more are considered "large-cap" stocks, and RTX Corporation fits right into that category. Its market cap exceeds this threshold, reflecting its substantial size, stability, and influence in the aerospace and defense sectors. The industry leader has focused on innovation and self-reliance through multiple acquisitions and strategic partnerships over the past years, enhancing its technological capabilities and expanding its market reach.
Shares of RTX are currently trading marginally below their 52-week high of $108.65, which they hit earlier this month. The stock has gained 19.4% over the past three months, significantly outperforming the iShares U.S. Aerospace & Defense ETF’s (ITA) 5.1% returns over the same time frame.
Over the longer term, RTX has also outperformed, with a YTD gain of 28.7%. In comparison, the ITA has gained 7.8% in 2024.
To confirm the bullish price trend, RTX has been trading above its 50-day moving average since late October 2023 and its 200-day moving average since late-January.
RTX's impressive price performance in 2024 is fueled by rising defense budgets amid global conflicts, such as the Russia-Ukraine and Middle East wars. As a major defense contractor, RTX secured significant deals, including contracts with Germany and Ukraine, which boosted its Q1 earnings results, reported on April 23. The heightened geopolitical tensions and subsequent military investments are driving RTX's financial success, significantly buoying its share value.
Highlighting the contrast in performance, RTX's competitor, Lockheed Martin, has significantly underperformed RTX, gaining 3.4% on a YTD basis. It also lagged behind ITA over this period.
Given its impressive price performance, analysts are optimistic about RTX's prospects. The stock has a consensus rating of "Moderate Buy" from 21 analysts in coverage. The mean price target of $101.26 indicates that the stock trades at a premium.
On the date of publication, Rashmi Kumari 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.
