Stock Price & Analysis

Based on the recent $100 million contract award and Baird's upgrade to Outperform, RTX stock is showing positive momentum. Buy RTX stock as it is well-positioned for growth with strong defense contracts and analyst confidence.

RTX stock is predicted to reach $140-$150 in 2025, driven by strong contract wins, analyst upgrades, and positive technical indicators.

The S1 support level for RTX Stock is $131.36 ,The R1 resistant level for RTX Stock is $135.63.

As of the end of day on 2025-04-01, the price of RTX Stock was $132.99.

The target price for RTX Stock according to analyst rating is 144.88, with the highest price target at 160.00 and the lowest at 120.00. Analysts have a Moderate Buy rating on RTX Stock overall.

The market cap of RTX is $177.4B.

Analysis and Insights

To determine if RTX is overvalued, we analyze its valuation metrics, financial performance, and market sentiment.

Valuation Metrics:

RTX's forward P/E ratio is 38.12, significantly higher than its peers Lockheed Martin (21.09) and Northrop Grumman (17.34). This premium valuation may indicate overvaluation relative to its earnings growth.

Financial Performance:

• Revenue Growth: RTX's revenue has grown steadily, from $19.305B in Q1 2024 to $21.623B in Q4 2024.
• Net Income: Inconsistent, with a drop to $111M in Q2 2024 but recovery to $1.482B in Q4 2024.
• Gross Profit: Rising each quarter, reaching $4.235B in Q4 2024.
• Debt-to-Equity Ratio: High at 0.99, indicating significant debt.
• Current Ratio: 1.07, barely covering short-term liabilities.

Technical Analysis:

RTX's stock is trading at $133.3 with a Fibonacci pivot at $131.07. The RSI is 58.04, neutral, with a positive MACD indicating upward momentum.

Analyst Sentiment:

Recent upgrades from Baird and Wells Fargo, with price targets of $160 and $156, respectively, reflect positive sentiment.

Conclusion:

While RTX shows strong revenue growth and improving profitability, its high P/E ratio, inconsistent net income, and high debt suggest potential overvaluation. Investors should consider these factors and possibly wait for more consistent performance before investing.

RTX Corporation is an aerospace and defense company, which provides advanced systems and services for commercial, military, and government customers worldwide. The Company operates through three segments: Collins Aerospace, Pratt & Whitney, and Raytheon. Collins Aerospace segment provides technologically advanced aerospace and defense products and aftermarket service solutions for civil and military aircraft manufacturers, commercial airlines, and regional, business and general aviation, as well as for defense and commercial space operations. The Pratt & Whitney segment supplies aircraft engines for commercial, military, business jet, and general aviation customers. The Raytheon segment provides defensive and offensive threat detection, tracking and mitigation capabilities for the United States and foreign government and commercial customers. Raytheon designs, develops, and provides advanced capabilities in integrated air and missile defense, smart weapons, missiles and others.

Price Prediction for RTX Stock by 2030

Based on current trends and analysis, RTX stock is predicted to reach $175 by 2030, driven by strong defense demand and its robust backlog of $218 billion.

The stock is supported by its leadership in missile defense systems and growing commercial aerospace demand, with analysts raising price targets to $150-$155 in 2025.

RTX has a total of 185000 employees.