RTX Corporation Stock Outlook: Is Wall Street Bullish or Bearish?
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Arlington, Virginia-based RTX Corporation (RTX) is an aerospace and defense company that provides systems and services for commercial, military, and government customers. Valued at a market cap of $210.3 billion, the company is known for its innovations in aviation, missile defense, space technologies, and cybersecurity.
This defense giant has outpaced the broader market over the past 52 weeks. Shares of RTX have soared 37.3% over this time frame, while the broader S&P 500 Index ($SPX) has gained 16.6%. Moreover, on a YTD basis, the stock is up 35.8%, compared to SPX’s 8.3% return.
However, narrowing the focus, RTX has lagged behind the SPDR S&P Aerospace & Defense ETF’s (XAR) 47% uptick over the past 52 weeks. Nonetheless, it has outperformed the ETF’s 31.5% rise on a YTD basis.
Despite delivering better-than-expected Q2 results on Jul. 22, shares of RTX plunged 1.6% after its earnings release. The company’s revenue improved 9.4% year-over-year to $21.6 billion, topping consensus estimates by 5.1%. Moreover, its adjusted EPS of $1.56 advanced 10.6% from the same period last year, surpassing analyst expectations by 7.6%. Robust organic sales and profit growth across all three segments supported its results. However, RTX lowered its fiscal 2025 adjusted EPS guidance in the range of $5.80 to $5.95, which might have weighed on investor sentiment, leading to a fall in its stock price.
For the current fiscal year, ending in December, analysts expect RTX’s EPS to grow 3.7% year over year to $5.94. The company’s earnings surprise history is promising. It exceeded the consensus estimates in each of the last four quarters.
Among the 24 analysts covering the stock, the consensus rating is a “Moderate Buy,” which is based on 15 “Strong Buy,” one "Moderate Buy,” and eight “Hold” ratings.
This configuration is slightly more bullish than three months ago, with 14 analysts suggesting a “Strong Buy” rating.
On Jul. 23, BofA Securities maintained a “Buy” rating on RTX and raised its price target to $175, indicating an 11.4% potential upside from the current levels.
While the company is trading above its mean price target of $156.87, its Street-high price target of $182 suggests an upside potential of 15.8%.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.