RTX Corporation (RTX) is attracting renewed investor attention following a sharp post-earnings decline that analysts argue has created a compelling valuation entry point.
Shares of RTX were trading at $187.33 as of June 29th, with trailing and forward price-to-earnings ratios of 35.27 and 27.03 respectively, according to Yahoo Finance.
A bullish thesis on RTX published on R. Dennis’s Substack by OppCost argues the stock represents a post-earnings volatility dislocation story worth examining closely.
The thesis centers on a large put sale of 4,570 contracts of the August 21, 2026 $155-strike puts, generating $1.99 million in premium and implying $70.8 million in potential assignment capital.
That options activity signals investor confidence in downside protection following a sharp 11.28% weekly selloff that rattled short-term sentiment across the defense sector.
RTX delivered what analysts described as a clean beat-and-raise quarter, with revenue of $22.08 billion, adjusted EPS of $1.78, and free cash flow of $1.3 billion.
The company also reported a record backlog of $271 billion and raised its 2026 guidance, yet the stock declined on tariff concerns and defense sector de-rating tied to easing geopolitical tensions.
The investment case is anchored in durable fundamentals, including a three-year revenue backlog, expanding commercial aerospace cycles driven by Pratt & Whitney and Collins, and rising global military budgets.
The $155 strike reflects a forward multiple near 22.7x earnings, embedding a margin of safety supported by recurring cash flows and a 50% payout ratio dividend history dating back to 1936.
Analyst price targets ranging from $207 to $240 suggest upside potential of approximately 20% to 35% from levels near $174, reinforcing the bullish skew outlined in the thesis.
Elevated implied volatility following earnings enhances the attractiveness of premium collection strategies, as option sellers stand to benefit from volatility normalization over time.
OppCost views RTX as a high-quality aerospace and defense compounder where short-term sentiment dislocation contrasts sharply with long-term earnings visibility and structural defense demand tailwinds.
NATO rearmament trends and rising global military budgets provide an additional structural tailwind that supports the defense segment’s long-term revenue outlook.
A prior bullish thesis on RTX covered by Stock Picker’s Corner in January 2025 highlighted defense tailwinds, X-Band radar, and hypersonic and drone defense capabilities as key growth drivers.
RTX’s stock price has appreciated by approximately 61.67% since that earlier coverage, underscoring the compounding returns the aerospace and defense giant has delivered to patient investors.
According to available data, 95 hedge fund portfolios held RTX at the end of the first quarter of 2026, up from 79 hedge fund portfolios in the previous quarter.
