Key Takeaways RTX outperformed its industry over the past month, with shares rising 9.8% on strong momentum.RTX won an FAA contract supporting the Radar System Replacement program to modernize U.S. air traffic control.RTX shows steady sales and earnings growth estimates, though global trade tensions remain a near-term risk.RTX Corporation (RTX) stock has risen 9.8% in the past month, outperforming both the Zacks Aerospace-Defense industry’s growth of 3.7% and the broader Zacks Aerospace sector’s gain of 4.5 ...

Core Insights - RTX Corporation (NYSE:RTX) is recognized as one of the best-performing quantum computing stocks in 2025, with significant recent contract wins in defense systems [1] Group 1: Recent Contracts and Collaborations - RTX's Raytheon has secured a $1.7 billion contract from Spain for four Patriot air and missile defense systems, marking the largest order for the Patriot system [1][2] - The contract includes radars, launchers, command-and-control stations, and training equipment, and involves collaboration with Spanish firms like Sener for missile components [2] - Earlier in December, Raytheon was awarded a $168 million contract to deliver Patriot systems to Romania, indicating a growing demand for the defense system in Europe [2] Group 2: Technological Advancements - On December 19, Raytheon announced a contract with the US Air Force to install its PhantomStrike radar on the X-62A VISTA testbed aircraft, which is designed for autonomous flight testing [3] - The PhantomStrike radar is noted for being compact, weighing under 150 pounds, and offers advanced features such as digital beamforming and multimode operations at a lower cost compared to similar radars [3] Group 3: Market Sentiment and Stock Performance - Wall Street analysts are optimistic about RTX, with J.P. Morgan's Seth Seifman reiterating a Buy rating and raising the price target from $195 to $200 [4] - John Godyn also initiated coverage with a Buy rating and a price target of $211, reflecting positive sentiment towards the stock [4] Group 4: Business Segments and Quantum Computing Focus - RTX operates through three main segments: Collins Aerospace, Pratt & Whitney, and Raytheon, with a focus on quantum computing led by BBN Technologies [5] - The quantum computing operations aim to develop algorithms for optimization, physics simulations, and advanced sensors for defense applications [5]

Core Insights - RTX Corporation (RTX) shares have increased by 15.1% over the past three months, outperforming the Zacks Aerospace-Defense industry's growth of 3.7% and the broader Zacks Aerospace sector's gain of 3% [1][8] - Other industry players like Huntington Ingalls Industries (HII) and General Dynamics (GD) have also shown strong performance, with HII shares rising by 18.9% and GD by 11.3% in the same period [3] - RTX's recent gains are attributed to strong quarterly results, strategic collaborations, and notable contract wins, contributing to investor optimism [5][8] Financial Performance - RTX reported a solid revenue growth of 11.9% in its third-quarter 2025 results, with a bottom line improvement of 17.2% compared to the same quarter last year [5] - The Zacks Consensus Estimate for RTX's 2025 sales indicates a year-over-year growth of 7.8%, while the estimate for 2026 sales suggests an improvement of 6.4% [10] - The consensus estimate for RTX's earnings in 2025 and 2026 implies year-over-year growth of 7.9% and 9%, respectively [10] Strategic Developments - In November 2025, RTX signed a Memorandum of Understanding to assist Avio in establishing a solid rocket motor facility in the U.S., enhancing its vertical integration [6] - RTX's Raytheon business secured a contract to support the UK's Space Domain Awareness mission, utilizing NORSSTrack software for satellite tracking and debris monitoring [7] - The company delivered its first PhantomStrike radar to Korea Aerospace Industries for the FA-50 Light Combat Aircraft fleet in October [7] Valuation Metrics - RTX's forward 12-month price-to-earnings (P/E) ratio stands at 26.91X, which is below the industry average of 28.93X, indicating a potentially attractive valuation [14] - Comparatively, HII and GD have lower forward P/E ratios of 19.02X and 20.62X, respectively [15] Market Outlook - The steady flow of contract wins from the Pentagon and U.S. allies for RTX's defense products serves as a significant growth catalyst [9] - Recent upward revisions in RTX's earnings estimates over the past 60 days reflect increasing investor confidence in the company's earnings generation capabilities [12]

Core Insights - RTX Corporation (RTX) is enhancing its radar systems portfolio to address the increasing global demand for surveillance, missile detection, and air defense solutions due to rising geopolitical tensions and defense spending [1] Company Developments - The Raytheon business segment is focused on developing next-generation radar systems that improve tracking precision and situational awareness for land and naval operations, with significant investments in research and development for advanced radar technologies [2] - A notable achievement is the successful first flight test of the PhantomStrike radar in May 2025, which utilizes gallium nitride (GaN) technology for long-range threat detection at approximately half the cost of traditional fire-control radars [3] - In September, RTX launched the APG-82(V)X radar, integrating advanced GaN technology to enhance effectiveness across various operations, including air-to-air and electronic warfare [3] - The Raytheon unit's innovations contributed to a 6.4% sales growth in the second quarter of 2025 [4][9] Industry Context - The global radar systems market is expanding as nations increase investments in surveillance and air defense technologies, benefiting major defense contractors like Kratos Defense & Security Solutions and Lockheed Martin [5] - Kratos received a U.S. Navy contract worth up to $175 million in October 2025 for developing sustainment capabilities for AN/SPY-1 radar systems, reinforcing its position in the radar manufacturing sector [6] - Lockheed Martin's radar systems are utilized by over 45 nations, with a recent delivery of the Aegis System Equipped Vessel shipset to the Japan Ministry of Defense [7] Market Performance - RTX shares have increased by 27.3% over the past year, outperforming the industry average growth of 15.8% [8] - The company's shares are currently trading at a relative discount, with a forward 12-month Price/Earnings ratio of 24.37 compared to the industry's average of 28.51 [10]

Core Viewpoint - RTX Corp. has successfully completed the inaugural flight test of its PhantomStrike radar, showcasing its advanced capabilities in tracking airborne targets and terrain mapping, which may attract defense investors due to its affordability compared to traditional radars [1][2]. Company Performance - RTX's shares have increased by 12.8% year-to-date, outperforming the Zacks Aerospace-Defense industry's growth of 10.8% and the broader Aerospace sector's rise of 9.7%, while also surpassing the S&P 500's decline of 4.4% [4]. - The Collins Aerospace segment reported an 8% year-over-year revenue increase in Q1 2025, driven by a 13% rise in commercial aftermarket sales [6]. - The Pratt & Whitney unit experienced a 14% growth in Q1 sales, supported by a 28% surge in commercial aftermarket sales and a 3% increase in commercial OEM [7]. Market Outlook - The commercial aerospace market outlook remains positive, with the International Air Transport Association projecting a 3.8% average annual growth in global passenger traffic over the next 20 years, adding over 4.1 billion new passenger journeys by 2043 [8][10]. - Ongoing geopolitical tensions are expected to sustain strong demand for defense solutions, with RTX's defense backlog reported at $92 billion as of March 31, 2025 [11]. Earnings Estimates - The Zacks Consensus Estimate for RTX's second-quarter and full-year 2025 revenues suggests improvements of 4.9% and 4.2%, respectively, from the prior year [13]. - The earnings estimates for 2026 indicate an improvement of 5.8% and 11.9% from 2025 estimates [13]. Valuation - RTX's forward 12-month price-to-earnings (P/E) ratio is 20.73X, which is higher than its peer group's average of 18.64X, indicating a premium valuation [20].

Core Insights - Raytheon has successfully completed the first flight test of its PhantomStrike radar, demonstrating its capability in threat detection and terrain mapping [1][2][3] Product Overview - PhantomStrike is a fully air-cooled, fire-control radar designed for long-range threat detection, tracking, and targeting, costing nearly half of a typical fire control radar while providing superior capabilities [2][3] - The radar utilizes gallium nitride (GaN) technology, allowing aircrew to detect threats from greater distances and is suitable for various platforms including uncrewed aircraft, fighter jets, and ground-based towers [3] Strategic Importance - The evolving threat environment necessitates enhanced situational awareness, which PhantomStrike aims to provide to a broader range of partners and allies, facilitating U.S. weapons integration at an affordable price [3] - The radar's lightweight design, weighing nearly half of a modern active electronically scanned array (AESA) radar, represents a significant advancement in fire control technology [3] Production and Support - Production of the PhantomStrike radars occurs in multiple locations including Forest, Mississippi; Tucson, Arizona; and Scotland, with support from Raytheon UK [4] Company Background - Raytheon, part of RTX, has over 100 years of experience in developing defense solutions, focusing on integrated air and missile defense, advanced sensors, and various defense technologies [5] - RTX is the largest aerospace and defense company globally, with over 185,000 employees and projected sales exceeding $80 billion in 2024 [6]