RTX Corporation (RTX) Hits Fresh High: Is There Still Room to Run?

A strong stock as of late has been RTX (RTX). Shares have been marching higher, with the stock up 13.2% over the past month. The stock hit a new 52-week high of $214.89 in the previous session. RTX has gained 16% since the start of the year compared to the 2.8% gain for the Zacks Aerospace sector and the 1.5% return for the Zacks Aerospace - Defense industry.

What's Driving the Outperformance?

The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on July 23, 2026, RTX reported EPS of $1.89 versus consensus estimate of $1.66 while it beat the consensus revenue estimate by 8.21%.

For the current fiscal year, RTX is expected to post earnings of $7 per share on $93.66 in revenues. This represents a 11.29% change in EPS on a 5.7% change in revenues. For the next fiscal year, the company is expected to earn $7.63 per share on $100.52 in revenues. This represents a year-over-year change of 9.07% and 7.33%, respectively.

Valuation Metrics

RTX may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.

On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.

RTX has a Value Score of C. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of B.

In terms of its value breakdown, the stock currently trades at 30.4X current fiscal year EPS estimates, which is a premium to the peer industry average of 23.6X. On a trailing cash flow basis, the stock currently trades at 22.1X versus its peer group's average of 15.8X. Additionally, the stock has a PEG ratio of 2.88. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

Zacks Rank

We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, RTX currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if RTX fits the bill. Thus, it seems as though RTX shares could have potential in the weeks and months to come.

How Does RTX Stack Up to the Competition?

Shares of RTX have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is General Dynamics Corporation (GD). GD has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of A, and a Momentum Score of D.

Earnings were strong last quarter. General Dynamics Corporation beat our consensus estimate by 11.41%, and for the current fiscal year, GD is expected to post earnings of $16.66 per share on revenue of $55.16 billion.

Shares of General Dynamics Corporation have gained 11.6% over the past month, and currently trade at a forward P/E of 23.22X and a P/CF of 20.37X.

The Aerospace - Defense industry is in the top 35% of all the industries we have in our universe, so it looks like there are some nice tailwinds for RTX and GD, even beyond their own solid fundamental situation.

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This article originally published on Zacks Investment Research (zacks.com).

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