RTX Corporation (RTX) - Stock Analysis
Last updated: Jan 14, 2026
Research Idea
Research content for general circulation. Not individualized advice. Methodology & Disclosures
Strong short-term upside supported by 13% organic sales growth, record $251B backlog, raised 2025 guidance, significant $1.7B+ new contracts, positive technical momentum (+10% since mid-Dec), and defense sector tailwinds from geopolitical tensions and rising military spending. Elevated valuation justified by consistent earnings beat and backlog quality.
Loading chart data...
AI Analyst Overview
Loading chart data...
Valuation Metrics
Fundamental Analysis
Key Financial Insights: ⢠Improving profitability ⢠Strong free cashflow ⢠Elevated leverage RTX shows improving margins and robust free cash flow but remains materially leveraged with very large intangibles and high market multiples that warrant caution.
Price Behavior
Key Price Behavior Insights: ⢠Short-term uptrend ⢠Early-December dip ⢠Support-held recovery Support Level: $171 Resistance Level: $194 Over the last month RTX climbed from roughly $178 to about $194, showing short-term bullish momentum despite an early-December dip to about $171 that keeps downside risk if that support breaks.
Sentiment & News
Key News Insights: ⢠Record backlog ⢠Defense spending ⢠Regulatory risk RTX's strong 2025 backlog and rising defense spending drove revenue growth and a near-term stock rally despite premium valuation and emerging regulatory constraints on capital allocation.
AI Summary
RTX has shifted from a cyclical recovery story to a defenseâdriven, cashâgeneration investment where upside now hinges on converting a huge backlog into margins and preserving FCF under new policy and execution constraintsâbuy for investors who prioritize secular defense demand but only if 2026 FCF materially outperforms the expected ~$1.1â1.3B powderâmetal hit. Monitor three specific, actionable triggers: 2026 FCF vs. guidance, visible supplyâchain/production ramp metrics (for backlog convertibility), and any policy language that would restrict capital returns.
Description
RTX Corporation is an aerospace and defense firm that supplies systems, equipment and services to commercial airlines, business and general aviation, military and government customers worldwide. Its operations are organized into Collins Aerospace, Pratt & Whitney and Raytheon, which respectively provide aircraft systems and aftermarket support, engines and auxiliary power units, and sensors and weapons systems for threat detection and mitigation. The company, incorporated in 1934 and headquartered in Arlington, Virginia, changed its name from Raytheon Technologies to RTX in July 2023.
Idea History
| Date | Close | Ticker | Company | Summary | Status | P/L |
|---|---|---|---|---|---|---|
| Jan 8 | Jan 15 | RTX | RTX Corporation | Strong short-term upside supported by 13% organic sales growth, record $251B backlog, raised 2025 guidance, significant $1.7B+ new contracts, positive technical momentum (+10% since mid-Dec), and defense sector tailwinds from geopolitical tensions and rising military spending. Elevated valuation justified by consistent earnings beat and backlog quality. | Closed | +6.8% |
| Dec 24 | Dec 31 | RTX | RTX Corporation | Raytheon Technologies exhibits compelling short-term return potential with 12-13% Q3 sales growth, record $251B backlog, new high-value defense contracts, margin expansion, strong $4B+ quarterly free cash flow, and nearly 9% price appreciation over past 3 weeks with positive technical momentum, supported by sector tailwinds and operational execution. | Closed | -1.6% |
| Dec 16 | Dec 23 | RTX | RTX Corporation | Solid Q3 financial results with raised guidance, record $251B backlog, substantial new contracts totaling billions in defense, positive free cash flow, and recent 6.4% price gain over 21 trading days, reflecting strong fundamentals and favorable aerospace & defense industry dynamics. | Closed | +3.2% |