RTX Outperforms Industry in the Past Month: Should You Buy the Stock?

RTX Corporation RTX stock has risen 9.8% in the past month, outperforming both the Zacks Aerospace-Defense industry’s growth of 3.7% and the broader Zacks Aerospace sector’s gain of 4.5%. It also came above the S&P 500’s return of 0.2% in the same time frame.

Other industry players, such as Huntington Ingalls Industries HII and General Dynamics GD, have also delivered a similar stellar performance in the past month. Shares of HII and GD have risen 15% and 5.9%, respectively, in the said period.

Given RTX’s strong recent performance, some investors may feel inclined to buy the stock quickly. However, it is important to evaluate whether the company’s fundamentals can support sustainable long-term growth or if the recent rally is temporary. A clear understanding of RTX’s growth outlook and associated risks is essential for making a well-informed investment decision.

Tailwinds for RTX

RTX’s share gains over the past month seem to be supported by its notable contract wins, which contributed to investors’ optimism.

In January 2026, RTX secured a $438 million contract from the Federal Aviation Administration (“FAA”), with the work to be carried out by its Collins Aerospace unit. The contract supports the Radar System Replacement program, which is part of the FAA’s efforts to modernize the U.S. National Airspace System and improve air traffic control infrastructure.

In December 2025, RTX secured a $1.7 billion contract to provide Spain with four Patriot air and missile defense systems. The foreign military sales agreement includes radars, launchers, command and control systems and related training equipment.

In the same month, RTX received a contract from the U.S. Air Force to equip the autonomous X-62A Variable In-flight Simulation Test Aircraft with a PhantomStrike radar.

Moreover, RTX secured a $168 million contract to supply Romania with equipment for the Patriot air and missile defense system. The foreign military sales agreement includes a radar, command and control systems, launchers, and related support and test equipment.

For defense contractors like RTX, a steady flow of contract wins from the Pentagon and U.S. allies for its combat-proven defense products, such as the most recent awards, serves as a major growth catalyst.

Estimates for RTX’s 2026 Sales and Earnings

The Zacks Consensus Estimate for RTX’s 2026 sales implies year-over-year growth of 6.6%. The consensus estimate for its 2026 earnings indicates a year-over-year increase of 8.6%.

The downward revision in its 2026 earnings over the past 60 days suggests investors’ decreasing confidence in this stock’s earnings generation capabilities.

RTX’s Valuation

In terms of valuation, RTX’s forward 12-month price-to-earnings (P/E) is 27.95X, a discount to the industry average of 31.12X. This suggests that investors will be paying a lower price than the company's expected earnings growth compared with its industry average.

Huntington and General Dynamics are trading at a discount in comparison with RTX. HII’s forward 12-month price-to-earnings is 21.19X, while GD’s forward 12-month price-to-earnings is 20.66X.

Liquidity Position of RTX

RTX has a current ratio of 1.07. The ratio, being more than one, indicates that RTX possesses sufficient capital to pay off its short-term debt obligations.

Risks to Take Note of Before Choosing RTX

U.S. executive orders issued in February 2025 imposed tariffs on imports, leading to retaliatory measures from China, the EU and Canada. These trade tensions could impact global business and affect defense companies like RTX, Huntington and General Dynamics, which have large international exposure.

Should You Buy RTX Stock Now?

Given RTX’s discounted valuation and rising earnings estimates, the stock appears reasonably valued with steady growth potential. However, ongoing global trade uncertainties pose near-term risks that could affect performance. Existing shareholders may consider holding the stock, while new investors might prefer to wait for clearer signs of stability before taking a position.

RTX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research