RTX (RTX) Laps the Stock Market: Here's Why

Company Performance - RTX's stock price ended at $193.85, reflecting a +2.84% change from the previous day's closing price, outperforming the S&P 500's gain of 0.16% [1] - Over the past month, RTX shares have appreciated by 5.51%, underperforming the Aerospace sector's gain of 10.85% but outperforming the S&P 500's gain of 1.89% [1] Upcoming Earnings - RTX is set to release its earnings report on January 27, 2026, with expected earnings of $1.45 per share, indicating a year-over-year decline of 5.84% [2] - The consensus estimate for revenue is $22.74 billion, which represents a 5.18% increase from the prior-year quarter [2] Annual Forecast - For the entire year, the Zacks Consensus Estimates forecast earnings of $6.19 per share and revenue of $87.07 billion, reflecting changes of +8.03% and 0%, respectively, compared to the previous year [3] - Recent changes to analyst estimates for RTX indicate confidence in the business performance and profit potential [3] Analyst Ratings - The Zacks Rank system, which assesses estimate changes, currently rates RTX at 4 (Sell), with the Zacks Consensus EPS estimate having moved 0.27% lower in the past month [5] - Historically, stocks rated 1 (Strong Buy) have produced an average annual return of +25% since 1988 [5] Valuation Metrics - RTX is currently traded at a Forward P/E ratio of 28.06, which is a premium compared to the industry average Forward P/E of 23.56 [6] - The company has a PEG ratio of 2.74, compared to the average PEG ratio for the Aerospace - Defense industry, which is 1.87 [6] Industry Overview - The Aerospace - Defense industry ranks in the top 43% of all industries, with a current Zacks Industry Rank of 104 [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]