RTX Stock Analysis — RTX Corporation
Sector: Aerospace & Defense
AI Verdict
RTX trades at 25.4x next year's earnings with nearly 30% EPS growth expected, so the price is fair if its deep defense contracts and tech moat hold, but any stumble could trigger a sharp correction from these levels.
Competitive Moat
RTX designs and manufactures advanced aerospace and defense systems, with a defensible position built on decades-long military contracts and proprietary technologies in engines, avionics, and missile systems. Its scale and regulatory barriers make it difficult for new entrants to compete for government and commercial contracts.
Summary
RTX's 29.7% expected forward EPS growth is drawing attention as the company pivots from legacy defense to next-generation aerospace technologies.
Where It Stands
RTX is up 39.73% over the past year and 112% over five years, but its RSI of 11.8 signals extreme oversold territory even as it trades at 25.4x forward earnings, right in line with the 20x–25x industrials sector median.
Key Metrics
- RSI: 11.8 — Oversold
- Trailing P/E: 32.9x
- Forward P/E: 25.4x
- PEG Ratio: 1.10
- Earnings Growth: +0.3%
- Revenue Growth: +0.1%
- Market Cap: $236.6B
- Dividend Yield: 0.02%
- 1-Year Return: 39.73%
- 5-Year Return: 112%
- 52-Week High: $214.50
- 52-Week Low: $122.41
Analyst Consensus
17 Buy · 10 Hold · 3 Sell (30 analysts)
Bull Case
Analysts expect 29.7% forward EPS growth, which makes the 25.4x forward P/E look reasonable given the company's history of 112% five-year returns.
Bear Case
If RTX's P/E compresses from 25.4x to the industrials median of 20x, the stock could lose roughly 21% even before any earnings disappointment, and the RSI of 11.8 suggests the market is already pricing in risk.
Catalyst to Watch
Watch for major contract wins or regulatory shifts—either could materially change earnings visibility and justify the current multiple.