RTX Corporation RTX stock has surged 36.6% in the past year, outperforming the Zacks Aerospace-Defense industry’s growth of 6.6%. It also outperformed the broader Zacks Aerospace sector’s growth of 11% and the S&P 500’s return of 23.7% in the same time frame.
Other industry players, such as General Dynamics GD and Lockheed Martin LMT, have delivered a similar performance in the past year. Shares of GD and LMT have gained 26.7% and 16.4%, respectively, in the said period.
Given RTX’s strong recent performance, some investors may feel inclined to buy the stock quickly. However, it is important to evaluate whether the company’s fundamentals can support sustainable long-term growth or if the recent rally is temporary. A clear understanding of RTX’s growth outlook and associated risks is essential for making a well-informed investment decision.
Tailwinds for RTX
RTX continues to strengthen its aerospace and defense business through new contract wins and technological advancements. In June 2026, its Pratt & Whitney unit achieved a major milestone as the F119 engine surpassed 1 million flight hours, powering the Lockheed Martin F-22 Raptor. The achievement highlights the engine's long-term reliability and its critical role in supporting the U.S. Air Force's premier air superiority fighter.
Also in June, RTX announced that it is developing a large-aperture telescope for the Lazuli Space Observatory, part of the Eric and Wendy Schmidt Observatory System. The 3.1-meter unobscured aperture telescope will be the largest of its kind launched on a commercial platform and is expected to deliver sharper imagery, greater sensitivity and faster data collection through advanced materials and digital engineering.
Moreover, Raytheon secured a $1.1 billion contract from the U.S. Navy to produce AIM-9X Block II missiles. The award includes the production of missiles, as well as associated hardware and software, to replenish U.S. military inventories and meet growing demand from allied nations through Foreign Military Sales.
These developments highlight RTX's continued focus on strengthening its defense portfolio, expanding advanced aerospace technologies and supporting long-term growth through innovation and strategic defense programs.
Estimates for RTX’s 2026 Sales and Earnings
The Zacks Consensus Estimate for RTX’s 2026 sales implies year-over-year growth of 6%. The consensus estimate for its 2026 earnings indicates a year-over-year increase of 9.9%.
The stock’s annual bottom-line estimates have remained constant over the past 60 days.
RTX’s Valuation
In terms of valuation, RTX’s forward 12-month price-to-sales (P/S) is 2.76X, a premium to the industry average of 2.64X. This suggests that investors will be paying a higher price than the company's expected sales growth compared with its industry average.
General Dynamics and Lockheed Martin are trading at a discount in comparison with RTX. GD’s forward 12-month price-to-sales is 1.80X, while LMT’s forward 12-month price-to-sales is 1.56X.
Liquidity Position of RTX
RTX has a current ratio of 1.02. The ratio, being more than one, indicates that RTX possesses sufficient capital to pay off its short-term debt obligations.
Its industry peers, General Dynamics and Lockheed Martin, also maintain current ratios above one. GD has a current ratio of 1.38, while LMT holds 1.14.
What Should an Investor do Now?
RTX continues to benefit from rising earnings estimates, solid long-term growth prospects and a strong liquidity position. Backed by these strengths and its expanding presence across the aerospace and defense markets, the stock remains a compelling choice for investors seeking long-term growth.
RTX currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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