RTX Outperforms Industry in the Past Year: Should You Buy?

Core Insights - RTX Corporation (RTX) stock has increased by 62.5% over the past year, outperforming the Zacks Aerospace-Defense industry's growth of 36.9% and the broader Zacks Aerospace sector's gain of 40%, as well as the S&P 500's return of 25.2% [1][9] Performance Comparison - Other industry players such as Huntington Ingalls Industries (HII) and General Dynamics (GD) have also shown strong performance, with HII shares rising by 120.3% and GD shares increasing by 37% in the same period [2] Business Developments - RTX's recent stock performance is bolstered by several business developments in its defense and aerospace operations [4] - In February 2026, RTX's BBN Technologies secured a contract from DARPA for advanced X-ray tools aimed at enhancing military situational awareness [5] - RTX received a production contract from its Raytheon ELCAN optical systems business to supply a customized weapon sight to the German Armed Forces [6] - The company announced a $200 million investment to expand operations in Columbus, GA, which is expected to increase production of key engine components by approximately 30% [7][10] Financial Estimates - The Zacks Consensus Estimate for RTX's 2026 sales indicates a year-over-year growth of 5.4%, with projected sales of $93.36 billion for 2026 [11] - The consensus estimate for RTX's 2026 earnings suggests a year-over-year increase of 8.3%, with an expected earnings per share of $6.81 [13] Valuation Metrics - RTX's forward 12-month price-to-earnings (P/E) ratio is 30.00X, which is lower than the industry average of 33.28X, indicating a potentially attractive valuation [15] - In comparison, HII's forward P/E is 24.24X and GD's is 21.73X, suggesting that RTX is trading at a premium relative to these peers [16] Liquidity Position - RTX has a current ratio of 1.03, indicating sufficient capital to meet short-term debt obligations [17]