RTX Surpasses Industry Performance Over the Last Year: Is It a Good Investment?

RTX Corporation's Recent Market Outperformance

Over the last twelve months, RTX Corporation has seen its share price climb by 62.5%, significantly surpassing the Zacks Aerospace-Defense industry's 36.9% growth and the broader Aerospace sector's 40% increase. This performance also outpaced the S&P 500, which returned 25.2% during the same period.

Image Source: Zacks Investment Research

Strong Gains Among Industry Peers

Other major players in the sector, including Huntington Ingalls Industries and General Dynamics, have also posted impressive results. Over the past year, Huntington Ingalls Industries' stock surged by 120.3%, while General Dynamics saw a 37% increase. These robust performances highlight the sector's momentum.

Given RTX’s notable gains, investors may be considering whether now is the right time to invest. However, a thorough assessment of the company’s underlying strengths and potential challenges is essential to determine if this upward trend is sustainable or temporary. Examining RTX’s growth drivers and risks can help guide investment decisions.

Key Growth Drivers for RTX

RTX’s recent share appreciation is underpinned by several significant developments in its defense and aerospace divisions.

• In February 2026, RTX’s BBN Technologies division secured a contract from DARPA for the X-ray Extreme range Non imaging Analysis program. This initiative focuses on creating advanced X-ray systems capable of reconstructing the concealed structure of man-made objects from nearly a kilometer away, enhancing military situational awareness in hazardous or inaccessible areas.
• Through its Raytheon ELCAN optical systems business, RTX was awarded a production contract to provide a customized Specter DR 1-4x weapon sight to the German Armed Forces. This system, designed for Germany’s soldier modernization program, features an integrated reflex sight for both close and mid-range targeting.
• The company also announced a $200 million investment to expand its Columbus, GA operations, including the installation of a new isothermal forging press. This upgrade is expected to boost production of critical engine components by approximately 30%, supporting increased demand for programs such as the GTF and F135.

These initiatives demonstrate ongoing demand for RTX’s advanced defense solutions and its commitment to expanding aerospace manufacturing, reinforcing its long-term growth outlook.

Projected Sales and Earnings for 2026

Analyst consensus from Zacks projects RTX’s sales to grow by 5.4% year-over-year in 2026, with earnings expected to rise by 8.3% over the same period.

Image Source: Zacks Investment Research

Upward revisions to RTX’s 2026 earnings estimates over the past two months reflect growing investor confidence in the company’s ability to generate profits.

Image Source: Zacks Investment Research

RTX’s Valuation Compared to Peers

RTX is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 30.00, which is below the industry average of 33.28. This suggests that RTX shares are priced more attractively relative to expected earnings growth than many of its industry counterparts.

Image Source: Zacks Investment Research

In comparison, Huntington Ingalls Industries and General Dynamics are trading at even lower forward P/E ratios of 24.24 and 21.73, respectively, indicating a further discount relative to RTX.

RTX’s Financial Health

With a current ratio of 1.03, RTX demonstrates that it has sufficient liquidity to meet its short-term financial obligations, reflecting a stable financial position.

Potential Risks for RTX Investors

Recent U.S. executive orders in February 2025 imposed tariffs on imports, leading to retaliatory measures from China, the European Union, and Canada. These escalating trade disputes could disrupt global business operations and pose challenges for defense companies like RTX, Huntington Ingalls Industries, and General Dynamics, all of which have significant international exposure.

Conclusion: Is RTX a Buy?

RTX’s favorable valuation and positive earnings outlook indicate that the stock is reasonably priced and offers solid growth potential. However, ongoing uncertainties in global trade could introduce short-term volatility and impact performance. Existing shareholders may consider holding their positions, while prospective investors might prefer to wait for greater clarity before making a move.

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