RTX Outperforms Industry in the Past 6 Months: How to Play the Stock?

RTX Corporation RTX stock has risen 30.2% in the past six months, outperforming both the Zacks Aerospace-Defense industry’s growth of 8.7% and the broader Zacks Aerospace sector’s gain of 9.4%. It also came above the S&P 500’s return of 13.6% 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 six months. Shares of HII and GD have risen 58.6% and 13.2%, respectively, in the said period.

Given RTX’s strong recent performance, some investors may be inclined to buy the stock. However, it is important to assess whether the company’s fundamentals can support long-term growth or if the recent rally may be temporary. Understanding RTX’s growth outlook and potential risks is essential for making an informed investment decision.

Tailwinds for RTX

RTX’s recent share strength appears to be supported by several positive business developments across its defense and commercial aerospace segments.

In February 2026, RTX was selected by the Defense Advanced Research Projects Agency (DARPA) to develop an advanced sensing and targeting system. The system is designed to help protect commercial shipping and naval logistics vessels from emerging threats such as unmanned surface vehicles, highlighting RTX’s continued focus on advanced defense capabilities.

RTX also signed multiple memoranda of understanding with the Singapore Economic Development Board at the Singapore Airshow. These agreements build on a prior deal announced in July 2025 and reinforce RTX’s long-term commitment to Singapore as a key hub for aerospace manufacturing, maintenance repair and overhaul, and engineering activities.

Additionally, RTX signed two FlightSense renewal agreements with All Nippon Airways at the Singapore Airshow. These agreements strengthen RTX’s commercial aerospace services business and reflect steady demand from major airline customers.

Overall, these developments point to a healthy flow of defense and commercial aerospace opportunities, supporting RTX’s growth outlook and helping sustain investor confidence.

Estimates for RTX’s 2026 Sales and Earnings

The Zacks Consensus Estimate for RTX’s 2026 sales implies year-over-year growth of 5.2%. The consensus estimate for its 2026 earnings indicates a year-over-year increase of 8%.

The upward revision in its 2026 earnings over the past 60 days suggests investors’ increasing 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 29.76X, a discount to the industry average of 32.30X. 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 24.48X, while GD’s forward 12-month price-to-earnings is 21.53X.

Liquidity Position of RTX

RTX has a current ratio of 1.03. 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.

Final Call

Given RTX’s attractive valuation and improving earnings outlook, the stock appears fairly valued with stable growth potential. However, ongoing global trade uncertainties present near-term risks that could impact performance. Existing investors may consider holding the stock, while prospective investors may prefer to wait for greater clarity before initiating 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