RTX Corporation (NYSE:RTX) shares are up during Wednesday’s premarket session after the company announced a significant contract with the German Armed Forces for its Raytheon ELCAN division.
RTX Secures Major German Defense Contract
Under a new agreement, RTX’s Raytheon ELCAN will deliver customized Specter® DR sights specifically tailored to meet German operational needs.
This contract, part of a surge in European demand, involves an innovative configuration that includes an Aimpoint® reflex sight for enhanced versatility in combat scenarios. The total value of these orders across Europe since August 2024 surpasses 193 million euros.
Since last year, Germany, along with Denmark, Lithuania, Spain, Italy, and Finland, has ordered over 100,000 Specter® DR sights.
This substantial order reflects RTX’s strong positioning in the European defense market, underscoring its ability to meet diverse international military requirements with advanced, customized solutions.
$200M Columbus Expansion
Additionally, Pratt & Whitney announced on Tuesday that it is investing $200 million to expand its Columbus, Georgia, facility, adding a seventh isothermal forging press that will boost the output of key engine components by 30% when it comes online in 2028.
The expansion supports the production of the commercial GTF engine and the military F135 program. It follows a recent $70 million upgrade that increased GTF MRO capacity by 25%. Since 2008, the company has invested over $1 billion in the site, which employs more than 2,600 people.
Strong Year-Long Bullish Trend
Over the past 12 months, RTX has appreciated by 55.85%, indicating robust long-term bullish momentum. Currently, the stock is trading just below its 20-day SMA of $200.28 but remains well above the 100-day and 200-day SMAs, suggesting sustained upward trends. The stock’s performance is near its 52-week high of $206.73, demonstrating its strong market position.
The technical indicators show a mixed sentiment. The RSI stands at 50.94, indicating a neutral market momentum, while the MACD, currently below its signal line, suggests some bearish pressure. These mixed signals imply a cautious outlook in the short term but a positive view in the longer term, given the stock’s overall upward trajectory.
Earnings Forecast and Analyst Ratings
Looking further out, the next major catalyst for the stock arrives with the April 21, 2026, earnings report. Here’s what to expect:
- EPS Estimate: $1.51 (Up from $1.47 YoY)
- Revenue Estimate: $21.39 billion (Up from $20.31 billion YoY)
- Valuation: P/E of 40.0x (Indicates premium valuation)
Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $186.43. Recent analyst moves include:
- Citigroup: Buy (Raises Target to $238.00) (Feb. 5)
- JP Morgan: Overweight (Raises Target to $215.00) (Jan. 28)
- RBC Capital: Outperform (Raises Target to $230.00) (Jan. 28)
Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for RTX, highlighting its strengths and weaknesses compared to the broader market:
- Value: Weak (Score: 21.99) — Reflects a premium valuation relative to peers.
- Quality: Strong (Score: 93.45) — Indicates high-quality corporate metrics and performance.
- Momentum: Strong (Score: 85.56) — Suggests robust market performance and investor interest.
The Verdict: RTX’s Benzinga Edge signal shows a solid investment profile, with strong quality and momentum scores, though its value rank suggests a higher price relative to peers. Investors should consider the premium valuation in their investment strategy. Below is the Benzinga Edge scorecard for RTX, highlighting its strengths and weaknesses compared to the broader market:
- Value: Weak (Score: 21.99) — Reflects a premium valuation relative to peers.
- Quality: Strong (Score: 93.45) — Indicates high-quality corporate metrics and performance.
- Momentum: Strong (Score: 85.56) — Suggests robust market performance and investor interest.
The Verdict: RTX’s Benzinga Edge signal shows a solid investment profile, with strong quality and momentum scores, though its value rank suggests a higher price relative to peers. Investors should consider the premium valuation in their investment strategy.
ETFs Heavily Invested in RTX
- Capital Group Dividend Value ETF (NYSE:CGDV): 4.94% Weight
- Invesco Aerospace & Defense ETF (NYSE:PPA): 8.88% Weight
- Global X Defense Tech ETF (NYSE:SHLD): 7.86% Weight
Significance: Because RTX carries such a heavy weight in these funds, any significant inflows or outflows will likely trigger automatic buying or selling of the stock.
RTX Price Action: RTX shares were up 0.17% at $198.80 during premarket trading on Wednesday, according to Benzinga Pro data.
Image by T. Schneider via Shutterstock
