RTX Corporation (RTX) has surged 14.1% over the past month, significantly outpacing the Zacks Aerospace-Defense industry’s growth of 8.2% in the same period.
The stock also outperformed the broader Zacks Aerospace sector’s 6.6% gain and the S&P 500’s modest 2.9% return over that timeframe.
Peers General Dynamics (GD) and Lockheed Martin (LMT) also posted gains, with GD rising 6.2% and LMT climbing 15.9% over the same stretch.
RTX’s recent rally raises an important question for investors about whether the company’s fundamentals can sustain long-term growth or whether the momentum may soon fade.
A major driver of confidence is a significant contract win, as RTX’s Raytheon business secured a $745 million award from the Missile Defense Agency in August 2026 for Standard Missile-3 Block IIA interceptors.
RTX closed the second quarter of 2026 with a record backlog of $289 billion, up 22% year over year, including $119 billion in defense orders alone.
The company received $43 billion in new awards during the quarter, with nearly $20 billion coming from Raytheon, supported by strong demand for Patriot and AMRAAM systems alongside rising international orders.
Raytheon and Composite Energy Technologies also successfully demonstrated the undersea launch capabilities of HADALUS, a new low-cost, long-endurance unmanned undersea vehicle, for the U.S. Navy in August 2026.
Additionally, Raytheon delivered and installed the first SPY-6(V)4 radar array at the U.S. Navy’s Surface Combat Systems Center in Virginia, supporting the modernization of Flight IIA Destroyers with testing expected to continue through mid-2028.
The Zacks Consensus Estimate for RTX’s 2026 sales implies year-over-year growth of 8.4%, while the consensus estimate for 2026 earnings points to a year-over-year increase of 14.6%.
Annual bottom-line estimates for RTX have moved higher over the past 60 days, reflecting growing analyst confidence in the company’s earnings trajectory.
On valuation, RTX trades at a forward 12-month price-to-sales ratio of 3.02X, a premium compared to the industry average of 2.67X, suggesting investors are pricing in stronger growth expectations.
By comparison, General Dynamics trades at a forward price-to-sales of 1.87X and Lockheed Martin at 1.68X, both at a notable discount to RTX.
RTX carries a current ratio of 1.01, indicating sufficient capital to meet short-term debt obligations, while GD holds a stronger current ratio of 1.44 and LMT stands at 1.19.
RTX currently carries a Zacks Rank #2 (Buy), reflecting a combination of rising earnings estimates, solid long-term growth prospects, and a strong liquidity position that supports its investment case.
