How to play defense stocks in 2026
It was a big year for defense and aerospace stocks, with names like GE Aerospace (GE) and RTX (RTX) up more than 50% in 2025. Gabelli Funds Portfolio Manager Tony Bancroft, who manages the Gabelli Fun...
Fiscal Year: January - December
RTX Corporation (RTX), listed on the NYSE, has a market capitalization of $. As of Jan 05, 2026, the stock is trading at $187.25 per share, offering investors a clear view of its current market value. RTX Corporation is a prominent player in the industry sector, attracting both institutional and retail investors due to its performance and potential.
With a P/E ratio of 38.45, investors can assess the stock's valuation in comparison to its earnings. A P/E ratio is a crucial indicator for value investors, showing whether the stock is over or undervalued relative to its current earnings. RTX Corporation also offers a dividend yield of 1.45%, making it an attractive option for income-focused investors who seek regular dividends.
Our Discounted Cash Flow (DCF) analysis reveals that RTX Corporation (RTX) may be overvalued compared to its intrinsic worth. However, to see the exact DCF fair value, please Login or Upgrade for access.
The proprietary SS Score for RTX Corporation is a unique metric that analyzes the company's financial health and growth potential. The score takes into account critical factors such as revenue growth, net income, free cash flow (FCF) compound annual growth rate (CAGR), the trend of shares outstanding, and the debt-to-FCF ratio. This helps investors to make a more informed decision, as an undervalued stock might still have poor financial fundamentals.
To view the detailed SS Score for RTX Corporation, Login or Upgrade for access.
The Price to Free Cash Flow (P/FCF) ratio for RTX Corporation is 47.94, offering insights into how much investors are paying for the company's free cash flow. A lower P/FCF ratio typically suggests that the stock is undervalued, while a higher ratio may indicate overvaluation.
In summary, RTX Corporation (RTX) has shown consistent financial performance, as illustrated by the financial charts above, which track its revenue growth, net income, free cash flow, and shares outstanding over the past several years. These metrics provide investors with key insights into the company's past and projected future performance. Investors should use the SS Score alongside the DCF Fair Value to make better-informed decisions about whether to buy or hold the stock.
*This analysis is for informational purposes only and does not constitute investment advice. Always read the company's 10-K filings and do your own research before making any investment decisions.
Whether RTX Corporation (RTX) is a good stock to buy depends on various factors, including its financial health, market conditions, and your investment strategy. Our analysis indicates that the stock may be overvalued compared to its intrinsic value. However, it is important to assess the SS Score and review the company's fundamentals before making any investment decisions.
The fair value of RTX Corporation (RTX) is determined through our Discounted Cash Flow (DCF) analysis. This value represents the intrinsic worth of the stock based on its expected future cash flows. To view the specific fair value, consider subscribing to our service for complete access.
The SS Score is a proprietary financial quality metric that assesses factors such as revenue growth, net income, free cash flow growth, and debt levels. It helps investors evaluate the overall financial health of RTX Corporation. To access the full SS Score, consider upgrading your subscription.
RTX Corporation is a significant player in the industry sector, with a market capitalization of $ and a competitive P/E ratio of 38.45. Investors should compare these metrics with industry peers to gauge whether RTX Corporation is outperforming or underperforming within its sector.
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RTX is positioned as a dominant aerospace and defense powerhouse, leveraging record backlogs and diversified operations for strong growth. RTX's robust financials—$85.5B TTM revenue, 10.26% forward gr...
Raytheon Technologies, a unit of RTX Corp , won a $1.7 billion contract to deliver four Patriot air and missile defense systems to Spain, the U.S. defense contractor said on Tuesday.
Contract marks Spain's largest Patriot order ever ANDOVER, Mass. , Dec. 23, 2025 /PRNewswire/ -- Raytheon, an RTX (NYSE: RTX) business, was awarded a $1.7 billion contract to supply Spain with four Pa...
Small form factor Assured Precision Navigation and Timing solution unveiled at All-Domain Persistent Experiment CEDAR RAPIDS, Iowa , Dec. 22, 2025 /PRNewswire/ -- Collins Aerospace, an RTX (NYSE: RTX)...
PhantomStrike will provide VISTA aircraft with superior battlespace situational awareness EL SEGUNDO, Calif. , Dec. 19, 2025 /PRNewswire/ -- Raytheon, an RTX (NYSE: RTX) business, announced today that...
Second Patriot order for Romania within one year ANDOVER, Mass. , Dec. 19, 2025 /PRNewswire/ -- Raytheon, an RTX (NYSE: RTX) business, was awarded a $168 million contract to supply Romania with equipm...
Aerospace & defense stock RTX Corp (RTX) is posing an attractive entry point for options bulls right now. The shares have pulled back from their Oct. 28 record high of $181.34, last seen up 1.9% to tr...
Expanded relationship to improve mission results and program performance using advanced cloud-based tools and technologies AURORA, Colo. , Dec. 4, 2025 /PRNewswire/ -- Raytheon, an RTX (NYSE: RTX) bus...
RTX is a core US defense sector holding, benefiting from robust demand, record backlog, and strong double-digit revenue and earnings growth. RTX's premium valuation is justified by sustained geopoliti...
RTX said on Tuesday it has secured a $1.6 billion sustainment contract related to its F135 engines, which power variants of Lockheed Martin's F-35 fighter jets.
Award will support global engine sustainment and F-35 readiness EAST HARTFORD, Conn. , Dec. 2, 2025 /PRNewswire/ -- Pratt & Whitney, an RTX (NYSE: RTX) business, has been awarded a $1.6 billion undefi...
NEW YORK--(BUSINESS WIRE)--Lagrange Labs announced today that it has been registered as an approved supplier within Raytheon Technologies' vendor ecosystem. The integration enables deployment of DeepP...
RTX has proven itself indispensable during a volatile geopolitical environment, thanks to the higher defense spending trends and the growing backlog. The same has been observed in the commercial secto...
Defense contractor RTX said on Friday its joint venture Raytheon-Rafael Protection Systems has secured a $1.25 billion contract to supply Israel with surface-to-air missiles.
Raytheon-Rafael joint venture opens new factory, ramps up air defense production EAST CAMDEN, Ark. , Nov. 21, 2025 /PRNewswire/ -- The Raytheon-Rafael Protection Systems (R2S) joint venture was awarde...
Center will strengthen operational readiness for Europe's F-35 and CH-47F fleets ROTTERDAM, Netherlands , Nov. 20, 2025 /PRNewswire/ -- Collins Aerospace, an RTX (NYSE: RTX) business, and the Royal Ne...
Proven engine family has provided reliable power for agricultural aviation and firefighting missions for nearly 50 years RENO, Nev. , Nov. 19, 2025 /PRNewswire/ -- The global fleet of Pratt & Whitney ...
The United States confirmed the sale to Taiwan of an advanced air defence missile system worth almost $700 million which has been battle-tested in Ukraine, in the second such weapons package for Taipe...
Africa's largest airline expands in-flight comfort with Collins' Elevation suites and Parallel Diamond business class seats DUBAI, UAE, Nov. 18, 2025 /PRNewswire/ -- Collins Aerospace, an RTX (NYSE: R...
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Below estimates were sourced from SimplyWallSt and are intended for educational purposes only as a baseline for the analysis.
| Year | FCF Estimate | % | # Analysts |
|---|---|---|---|
| 2025 | 6.51B | 43.68% | Est @43.7% |
| 2026 | 8.50B | 30.40% | Analyst x11 |
| 2027 | 9.85B | 15.91% | Analyst x9 |
| 2028 | 10.67B | 8.34% | Analyst x4 |
| 2029 | 10.77B | 0.91% | Analyst x1 |
| 2030 | 10.89B | 1.17% | Est @1.2% |
| 2031 | 11.06B | 1.55% | Est @1.6% |
| 2032 | 11.26B | 1.82% | Est @1.8% |
| 2033 | 11.49B | 2.01% | Est @2.0% |
| 2034 | 11.72B | 1.99% | Est @2.0% |
Below are the FCF estimates with the discount factor and the calculated present value with the terminal value that led the results above.
| Year | FCF | Discount Factor | PV of Future FCF |
|---|---|---|---|
| 2023A | 5.47B | 1.00 | 5.47B |
| 2024A | 4.53B | 1.00 | 4.53B |
| 2025E | 6.51B | 1.08 | 6.03B |
| 2026E | 8.50B | 1.17 | 7.28B |
| 2027E | 9.85B | 1.26 | 7.81B |
| 2028E | 10.67B | 1.36 | 7.84B |
| 2029E | 10.77B | 1.47 | 7.32B |
| 2030E | 10.89B | 1.59 | 6.85B |
| 2031E | 11.06B | 1.72 | 6.44B |
| 2032E | 11.26B | 1.85 | 6.07B |
| 2033E | 11.49B | 2.00 | 5.74B |
| 2034E | 11.72B | 2.16 | 5.42B |
| Terminal | 217.51B | 2.16 | 100.55B |
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