RTX (RTX) is a Top-Ranked Growth Stock: Should You Buy?

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores provide a framework for evaluating stocks based on value, growth, and momentum characteristics [2][3] Zacks Style Scores Overview - Stocks are rated from A to F based on their value, growth, and momentum, with A indicating the highest potential for outperformance [3] - The Style Scores are categorized into Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] Value Score - The Value Score identifies undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Score assesses stocks based on projected and historical earnings, sales, and cash flow to identify sustainable growth opportunities [4] Momentum Score - The Momentum Score evaluates stocks based on recent price changes and earnings estimate trends to identify favorable buying opportunities [5] VGM Score - The VGM Score combines the three Style Scores to highlight stocks with attractive value, strong growth forecasts, and promising momentum [6] Zacks Rank Integration - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors in stock selection, with 1 (Strong Buy) stocks historically achieving an average annual return of +23.93% since 1988 [7] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal investment potential [9] Company Spotlight: RTX Corporation - RTX Corporation, formerly Raytheon Technologies, reported pro-forma combined annual revenues of $74 billion as of 2019 and operates in aerospace and defense [11] - RTX holds a Zacks Rank of 3 (Hold) and a VGM Score of B, with a Growth Style Score of B indicating a forecasted year-over-year earnings growth of 7.9% for the current fiscal year [12] - The Zacks Consensus Estimate for RTX's fiscal 2025 earnings has increased by $0.24 to $6.18 per share, with an average earnings surprise of +12.2% [12][13]