RTX Corporation: Strong Performance Despite Market Challenges
With a market cap of $170.2 billion, Arlington, Virginia-based RTX Corporation (RTX) stands out as a leading player in the aerospace and defense sector. The company operates through three main segments: Collins Aerospace, Pratt & Whitney, and Raytheon. These divisions provide sophisticated systems and services to commercial, military, and government clients worldwide.
Stock Performance Against Market Indices
RTX shares have outperformed the broader market in the past 52 weeks, gaining 25.9%, compared to an increase of 11.7% for the S&P 500 Index ($SPX). Furthermore, RTX shares have risen by 10.1% year-to-date (YTD), while the S&P 500 has seen a decline of 4.7%.
Examining the details, RTX has also outpaced the Industrial Select Sector SPDR Fund’s (XLI) 9.1% return over the past year, alongside a marginal YTD gain.
Recent Financial Performance and Forecast
On April 22, RTX released strong financial results for Q1 2025, reporting an adjusted EPS of $1.47 and revenues totaling $20.3 billion. However, the shares experienced a 9.8% drop in the aftermath. Management indicated that their full-year outlook of $6 – $6.15 in adjusted EPS and $7 billion – $7.5 billion in free cash flow may not fully account for the effects of newly implemented U.S. and international tariffs. The company estimates that these tariffs could reduce adjusted operating profit by approximately $850 million, despite planned mitigation strategies. Additionally, cash flow is likely to face further pressure due to delays in receiving duty refunds.
For the fiscal year ending in December 2025, analysts project RTX’s EPS to grow by 5.4% year-over-year to $6.04. The company’s earnings surprise history remains encouraging, having exceeded consensus estimates in the last four quarters.
Analyst Ratings and Price Target
Among the 23 analysts covering RTX, the current consensus rating is a “Moderate Buy,” supported by 14 “Strong Buy” ratings, one “Moderate Buy,” and eight “Holds.” This outlook is more bullish than three months ago, which had only 10 “Strong Buy” ratings.
On April 23, UBS analyst Gavin Parsons increased the price target for RTX Corporation to $138, while reiterating a “Buy” rating on the stock.
As of the latest reports, RTX is trading below the mean price target of $140.74, with the highest price target of $160 suggesting a potential upside of 25.6% based on current price levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect those of Nasdaq, Inc.
