Key Stats for RTX Stock
- This-Week Performance: 6%
- 52-Week Range: $112 to $214
- Valuation Model Target Price: $223
- Implied Upside: 8%
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What Happened?
RTX Corporation stock rose about 6% this week, finishing near $207 per share, as investors reacted to continued strength across defense stocks and growing expectations for sustained global military spending.
Shares held most of their gains through the week, suggesting sustained buying interest rather than a short-term reaction.
The advance was driven largely by renewed confidence in RTX’s exposure to long-term defense spending and aerospace demand.
Defense contractors have been gaining attention as governments expand military budgets and replenish weapons inventories, and RTX’s leadership in missile defense systems, radar platforms, and aircraft engines positions the company to benefit directly from these trends.
This week at Citi’s Global Industrial Tech and Mobility Conference, CEO Chris Calio highlighted RTX’s strong operating position across aerospace and defense, noting the company generated about $88 billion in sales last year and ended 2025 with a $268 billion backlog, which is up 23% since the end of 2024.
Calio emphasized the company’s focus on execution and said “the focus is on executing on that backlog and innovating for future growth.”
Recent institutional filings also showed active positioning among large investors. Fisher Asset Management increased its stake by 2.8%, adding 575,004 shares to bring its holdings to 21,174,194 shares worth about $3.54 billion, while Erste Asset Management boosted its position by 569.7% to 7,534 shares valued at about $1.24 million.
At the same time, some firms reduced exposure, including Laurel Wealth Advisors, which cut its stake by 99.3%, and American Century Companies, which reduced its position by 14.5% to 1,530,987 shares worth about $256 million, while institutional investors collectively own about 86.5% of RTX shares.
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Is RTX Undervalued?
Under valuation assumptions, the stock is modeled using:
- Revenue Growth (CAGR): 6%
- Operating Margins: 13.6%
- Exit P/E Multiple: 25x
RTX’s long-term outlook is supported by strong demand across both defense and commercial aerospace markets.
Rising global defense budgets continue to support demand for missile defense systems, radar platforms, and military engines, while commercial aviation recovery is driving higher demand for aircraft components and maintenance services.
The company also benefits from its large installed base of aircraft engines and aerospace systems, which generate recurring revenue through maintenance, repair, and overhaul activity. As global flight hours continue rising and airlines expand fleets, these aftermarket services can support steady revenue growth and margin expansion.
Another potential driver is RTX’s significant backlog, which provides multi-year visibility into future revenue. With $268 billion in orders already secured, the company has a substantial pipeline of programs to execute across both defense and aerospace segments.
Based on these assumptions, the valuation model estimates a target price of about $223, implying roughly 8% upside from current levels.
At today’s valuation, RTX appears fairly valued, with future performance likely driven by defense spending trends, aerospace production growth, and continued execution on its backlog.
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How Much Upside Does RTX Stock Have From Here?
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All it takes is three simple inputs:
- Revenue Growth
- Operating Margins
- Exit P/E Multiple
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