/RTX%20Corp%20logo%20on%20phone-by%20T_Schneider%20via%20Shutterstock.jpg)
With a market cap of $171.7 billion, RTX Corporation (RTX) is a leading aerospace and defense company that delivers advanced systems and services to commercial, military, and government customers worldwide. With cutting-edge innovations across Collins Aerospace, Pratt & Whitney, and Raytheon, RTX specializes in aircraft engines, avionics, cybersecurity, and missile defense solutions.
Shares of the aerospace and defense company have outpaced the broader market over the past 52 weeks. RTX has soared 42.4% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 23.3%. On a YTD basis, shares of RTX are up 11.5%, compared to SPX’s 3.2% gain.
Focusing more closely, the Arlington, Virginia-based company has outperformed the Industrial Select Sector SPDR Fund’s (XLI) nearly 22% return over the past 52 weeks and a 5.8% YTD gain.
Shares of RTX rose 2.6% on Jan. 28 due to its strong Q4 2024 earnings, with adjusted EPS of $1.54 beating estimates and marking a 19.4% increase from the prior year. Revenue also exceeded expectations, reaching $21.6 billion, up 8.5% year-over-year, fueled by increased sales in Pratt & Whitney, Raytheon, and Collins Aerospace. Demand for aircraft parts and repair services remained high as airlines flew older planes longer due to supply chain constraints, while RTX's defense segment saw a 36% profit boost from strong demand for its Patriot missile systems used in Ukraine.
Additionally, investor confidence was bolstered by RTX’s record $218 billion backlog and management’s reaffirmation of strong demand, despite slightly underwhelming 2025 guidance.
For the current fiscal year, ending in December 2025, analysts expect RTX’s EPS to grow 6.5% year-over-year to $6.10. The company's earnings surprise history is promising. It topped the consensus estimates in the last four quarters.
Among the 23 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 10 “Strong Buy” ratings, one “Moderate Buy,” 11 “Holds,” and one “Strong Sell.”
This configuration is more bullish than three months ago, with six “Strong Buy” ratings on the stock.
On Jan. 30, Bernstein analysts raised RTX’s price target to $136 while maintaining a Market Perform rating, citing strong Q4 earnings and improving long-term margins. Expanding MRO capabilities and a stable aftermarket for V2500 and GTF engines support RTX’s financial outlook despite potential margin headwinds.
As of writing, RTX is trading below the mean price target of $135.86. The Street-high price target of $159, implies a potential upside of 23.3% from the current price levels.
