RTX Corporation RTX stock has surged 14.1% in the past month, outperforming the Zacks Aerospace-Defense industry’s growth of 8.2%. It also outperformed the broader Zacks Aerospace sector’s growth of 6.6% and the S&P 500’s return of 2.9% in the same time frame.
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Other industry players, such as General Dynamics GD and Lockheed Martin LMT, have delivered a similar performance in the past month. Shares of GD and LMT have gained 6.2% and 15.9%, respectively, in the said period.
Given RTX’s strong recent performance, some investors may be tempted to buy the stock immediately. However, it is important to assess whether the company’s fundamentals can support sustainable long-term growth or whether the recent rally may be short-lived. Understanding RTX’s growth prospects and key risks will be important for making a well-informed investment decision.
Tailwinds for RTX
RTX continues to strengthen its aerospace and defense business through new contract wins and advancements in defense technology. In August 2026, its Raytheon business secured a $745 million contract from the Missile Defense Agency for the production and sustainment of Standard Missile-3 Block IIA interceptors. The award reflects continued demand for advanced missile defense systems and will help RTX expand production capacity and improve delivery timelines.
RTX’s strong backlog also provides good visibility into future revenues. The company ended the second quarter of 2026 with a record backlog of $289 billion, up 22% year over year, including $119 billion in defense orders. RTX received $43 billion in new awards during the quarter, with nearly $20 billion coming from Raytheon. Strong demand for Patriot, AMRAAM and other defense systems, along with rising international orders, provides multi-year revenue visibility.
Also in August, Raytheon and Composite Energy Technologies successfully demonstrated the undersea launch capabilities of HADALUS, a new low-cost, long-endurance unmanned undersea vehicle. The demonstration for the U.S. Navy highlights progress in developing unmanned systems capable of performing multiple missions, including detection, reacquisition and engagement.
Moreover, Raytheon delivered and installed the first SPY-6(V)4 radar array at the U.S. Navy’s Surface Combat Systems Center in Virginia. The milestone supports the modernization of Flight IIA Destroyers and the Navy’s SPY-6 radar backfit program. Testing is expected to continue through mid-2028 before the radar is installed on the USS Pinckney.
These developments highlight RTX’s focus on expanding its defense portfolio, strengthening its position in missile defense and naval systems, and building a strong pipeline of future business.
Estimates for RTX’s 2026 Sales and Earnings
The Zacks Consensus Estimate for RTX’s 2026 sales implies year-over-year growth of 8.4%. The consensus estimate for its 2026 earnings indicates a year-over-year increase of 14.6%.
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The stock’s annual bottom-line estimates have moved north over the past 60 days.
Image Source: Zacks Investment Research
RTX’s Valuation
In terms of valuation, RTX’s forward 12-month price-to-sales (P/S) is 3.02X, a premium to the industry average of 2.67X. This suggests that investors will be paying a higher price than the company's expected sales growth compared with its industry average.
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General Dynamics and Lockheed Martin are trading at a discount in comparison with RTX. GD’s forward 12-month price-to-sales is 1.87X, while LMT’s forward 12-month price-to-sales is 1.68X.
Liquidity Position of RTX
RTX has a current ratio of 1.01. 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 1.44, while LMT holds 1.19.
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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