Should You Pick RTX Corp Stock At $125 After 10% Gains In A Week?

Company Performance - RTX Corp stock has increased by 65% from $70 in early January 2021 to around $115, outperforming the S&P 500's 45% increase during the same period [2] - In Q2 2024, RTX reported revenue of $19.7 billion, an 8% year-over-year increase, with adjusted earnings of $1.41 per share, exceeding consensus estimates [3][5] - The revenue growth was driven by a 10% increase in Collins Aerospace sales and a 19% rise in Pratt & Whitney revenue, while Raytheon sales declined by 3% due to divestiture [5] Market Outlook - RTX has raised its full-year sales outlook to $78.75 – $79.5 billion and adjusted earnings per share guidance to $5.35 – $5.45, indicating positive investor sentiment [6] - Despite the positive outlook, RTX stock is currently trading at a valuation multiple of 21x expected earnings of $5.40 per share in 2024, which is higher than its historical average P/E ratio of 18x [4][6] Comparative Analysis - In recent stock performance, RTX has outperformed General Electric, with RTX rising 9% in a week compared to GE's 3% increase [3] - The stock's performance has been inconsistent, with returns of 23% in 2021, 19% in 2022, and -17% in 2023, indicating underperformance relative to the S&P 500 in certain years [2]