Core Insights - RTX Corporation (RTX) is gaining attention due to improving expectations around U.S. defense spending, with President Trump proposing a defense budget increase to approximately $1.5 trillion by 2027, up from the $901 billion budget approved for 2026 [1][8] Group 1: Defense Budget Implications - The proposed funding increase could facilitate sustained investments in weapons replenishment, modernization programs, and advanced defense technologies, enhancing funding visibility for large, multiyear defense programs and long-term contracts [2] - A larger defense budget may expand funding for both existing and new programs where RTX serves as a prime or key contractor, including integrated air and missile defense systems and next-generation guided weapons [4] Group 2: RTX's Position and Performance - RTX is a major supplier to the U.S. Department of Defense and allied nations, providing systems such as Patriot air and missile defense solutions and AIM-9X Block II missiles, which are typically backed by long-term contracts [3] - RTX shares have surged 62.3% over the past year, outperforming the industry growth of 33.9% [7] - The company's shares are currently trading at a relative discount, with a forward 12-month Price/Earnings ratio of 28.73X compared to the industry's average of 32.00X [9] Group 3: Earnings Estimates - The Zacks Consensus Estimate for RTX's 2026 earnings has seen a downward trend over the past 60 days, with revisions indicating slight increases and decreases across different quarters [10][13]