RTX Stock Jumps After Earnings. It Has 'Great Momentum,' Says CEO. - Barron'sSkip to Main ContentThis copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.# RTX Stock Jumps After Earnings. It Has 'Great Momentum,' Says CEO.By [Nate Wolf]and [Al Root]ShareResize---ReprintsIn this ar ...

Core Insights - Geopolitical instability has significantly boosted the growth of defense companies like Boeing and RTX Corporation, with increased defense budgets from the U.S. and its allies in response to rising global tensions [1][2] Defense Budget Trends - The increase in defense budgets is aimed at modernization and technical superiority, with a focus on enhancing military readiness and investing in advanced weapons systems [2] - The proposed fiscal 2026 defense budget under the Trump administration includes a 13.4% increase, raising total defense spending to approximately $1.01 trillion, emphasizing advanced aircraft and space initiatives [4] Boeing's Position - Boeing's Defense, Space & Security (BDS) segment is set for growth, benefiting from a diverse defense portfolio and a $76 billion backlog, with a 25% year-over-year revenue growth in Q3 2025 [5][14] - The company secured $9 billion in contract awards in Q3 2025, with significant funding allocated for programs like the F-15EX and the Space Force [4][5] RTX's Position - RTX has received strong orders for its defense products, achieving $15.9 billion in bookings during Q3 2025, including notable contracts for air and missile defense systems [6][14] - The company maintains a solid defense backlog of $103 billion, indicating robust growth prospects for both domestic and international defense programs [7][14] Financial Comparisons - Boeing's earnings per share (EPS) estimates have decreased by 146.25% and 47.64% for 2025 and 2026, respectively, while RTX's EPS estimates have increased by 0.81% and 0.90% [8][10] - Boeing's shares trade at a forward Price/Sales ratio of 1.75X, compared to RTX's 2.69X, indicating differing valuations [11] - Boeing's total debt to capital stands at 118.3%, significantly higher than RTX's 37.05%, reflecting better debt management by RTX [12] Price Performance - Over the past six months, Boeing's shares have increased by 1.6%, while RTX's shares have risen by 28.8%, showcasing stronger momentum for RTX [13] Investment Recommendation - Currently, RTX is favored due to its better price performance, strong earnings growth, and superior debt management compared to Boeing, although both companies hold a Zacks Rank of 3 (Hold) [15]