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Arlington, Virginia-based RTX Corporation (RTX) is a prominent provider of engineering and production services to aerospace and defense companies. Valued at $159.1 billion by market cap, it researches, develops, manufactures, and services a diverse portfolio of advanced systems and technologies for both commercial and military applications.
Companies worth $10 billion or more are considered "large-cap" stocks, and RTX Corporation fits right into that category. Its market cap exceeds this threshold, reflecting its substantial size, stability, and influence in the industrial sectors.
RTX Corp's diversified business model, spanning both the commercial aerospace and defense industry, provides a balanced revenue stream. This strategic diversification mitigates sector-specific risks and capitalizes on various growth opportunities, further supported by a global footprint that reduces reliance on any single market or economy.
Shares of RTX are currently trading 3.3% below their 52-week high of $123.70, which they hit on Aug. 30. The stock has gained 10.3% over the past three months, outpacing the S&P 500 Index’s ($SPX) 2.8% gain during the same time frame.
RTX has also outperformed in the longer term, with a YTD gain of 42.2% and a 40.7% return over the past year. In comparison, the SPX has soared 22.4% over the past 52 weeks and 15.4% in 2024.
To confirm the bullish price trend, RTX has been trading above its 50-day moving average since late July and over its 200-day moving average since late January.
RTX's solid price performance in 2024 is driven by rising defense budgets amid global conflicts like the Russia-Ukraine war and unrest in the Middle East. Additionally, the recovery in commercial air traffic has been fueling growth in both commercial OEM and aftermarket sales, further bolstering RTX's recent gains.
On Jul. 25, RTX stock rose more than 8% after the company reported its Q2 earnings result. Its adjusted EPS of $1.41 surpassed Wall Street estimates of $1.19. The company’s revenue of $19.72 billion beat the consensus estimates of $17.80 billion.
Highlighting RTX Corporation’s strong outperformance, rival Lockheed Martin Corporation (LMT) has struggled to keep up, achieving a 27.7% gain over the past 52 weeks and a 25.5% increase on a YTD basis.
Given its impressive price performance, analysts are cautiously optimistic about RTX's prospects. The stock has a consensus rating of "Moderate Buy" from 20 analysts in coverage, and it currently trades above its mean price target of $117.62.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
