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With a market cap of $178.3 billion, Arlington, Virginia-based RTX Corporation (RTX) is a global aerospace and defense company operating through three segments: Collins Aerospace, Pratt & Whitney, and Raytheon. It provides advanced systems and services for commercial, military, and government customers, specializing in aerospace products, aircraft engines, and defense technologies.
Companies valued at $10 billion or more are generally labeled as “large-cap” stocks, and RTX fits this criterion perfectly. RTX Corporation, with 185,000 employees, supports 90% of U.S. defense and commercial space launches, protects nearly 50% of the world’s population, and enables safe travel for 11 million passengers daily.
The aerospace and defense company has seen a 4.2% decline from its 52-week high of $135.36, reached on Mar. 3. Over the past three months, its shares have returned 8.8%, outperforming the broader Dow Jones Industrials Average's ($DOWI) 5.3% decline during the same period.
Longer term, RTX is up 12.1% on a YTD basis, outpacing DOWI's marginal rise. In addition, shares of RTX have surged 44.3% over the past 52 weeks, compared to the Dow Jones’ 9.3% gain over the same time frame.
RTX has shown a bullish trend, trading above its 50-day and 200-day moving average since last year.
Shares of RTX rose 2.6% on Jan. 28 due to the company's strong Q4 2024 earnings. Adjusted EPS of $1.54 beat the forecast, reflecting a 19.4% year-over-year increase, while revenue of $21.6 billion surpassed estimates, rising 8.6%. Investors responded positively to strong segment performance, including a 13% increase in defense sales, an 18% rise in Pratt & Whitney's revenue, and a 12% jump in Collins Aerospace’s aftermarket sales.
Additionally, RTX’s solid 2025 guidance, projecting $83 billion - $84 billion in sales and $7 billion - $7.5 billion in free cash flow, reinforced confidence.
However, RTX has underperformed its rival, GE Aerospace (GE), with GE experiencing an 18.7% YTD rise and a 53.7% gain over the past 52 weeks.
Despite RTX’s strong price action over the past year, analysts remain cautiously optimistic about its prospects. Among the 23 analysts covering the stock, there is a consensus rating of “Moderate Buy,” and it is currently trading below the mean price target of $139.87.
