RTX vs L3Harris: Which Defense Stock Has Better Growth Prospects?

Advanced aerospace and defense technologies are becoming an increasingly appealing investment area, supported by strong commercial aviation demand and rising global defense spending amid growing geopolitical tensions. In this environment, RTX Corporation RTX and L3Harris Technologies LHX are well positioned to benefit from sustained demand across missile defense, cybersecurity, electronic warfare and space systems.

Both companies offer diversified capabilities. RTX is known for its advanced aircraft engines and auxiliary power systems, along with expertise in missiles, radars, sensors, hypersonic and space technologies. On the other hand, L3Harris focuses on tactical communication systems, advanced intelligence, surveillance and reconnaissance systems, space payloads and propulsion, avionics and missile defense solutions.

Given their strong presence in the aerospace and defense sector, investors looking for stable and long-term opportunities may wonder which stock stands out. Let us take a closer look.

Tailwinds for RTX

In March 2026, RTX continued to strengthen its capabilities across defense and next-generation aviation technologies through multiple developments. RTX’s Raytheon completed a 26,000 square foot expansion of its Redstone Missile Integration Facility, supported by a $115 million investment. This expansion is expected to increase the site’s integration and delivery capacity by more than 50%, enhancing its ability to meet growing missile system demand.

Moreover, RTX’s Collins Aerospace successfully completed the HECATE project under the European Union’s Clean Aviation program, achieving Technology Readiness Level 5. This milestone validated the electrical architecture required for future hybrid electric aircraft in real-world conditions, marking steady progress toward more sustainable aviation solutions.

Additionally, Collins Aerospace initiated testing of electric motor drive systems for the Clean Aviation SWITCH project. These tests, conducted at its advanced electric power systems lab in Rockford, IL, represent an important step toward demonstrating hybrid electric technology on a full-scale Pratt and Whitney GTF engine, further advancing RTX’s position in next-generation propulsion systems.

Tailwinds for LHX

In March 2026, LHX secured a contract from the Defense Innovation Unit to deliver its Torpedo Tube Launch and Recovery system. This system enables the deployment and retrieval of the company’s Iver4 900 autonomous underwater vehicles through submarine torpedo tubes, allowing missions such as intelligence, surveillance, reconnaissance and mine detection to be carried out without surfacing or exposing personnel to risk. The capability has already been validated by the US and allied navies, highlighting its operational relevance.

Moreover, the company began high-volume production of its VAMPIRE counter-unmanned systems at a new facility in Huntsville, AL. The production line has been established to address the growing need to counter drone threats faced by the United States and its allies. Designed with flexible assembly and testing capabilities, the facility can scale output as demand increases, supporting rapid deployment across a range of military platforms.

Challenges for RTX & LHX

Supply-chain and labor challenges continue to pressure RTX and LHX, due to component shortages, inflation, workforce constraints and ongoing logistics bottlenecks across the industry.
Labor shortages remain a key concern. According to the 2025 Workforce Study by the Aerospace Industries Association in collaboration with McKinsey & Company, nearly 25% of the workforce is more than 55, increasing the risk of retirements and loss of critical expertise. At the same time, high attrition among younger employees continues as they shift to better-paying and more flexible roles, which may affect productivity and execution.

How Does the Zacks Consensus Estimate Compare for RTX & LHX?

The Zacks Consensus Estimate for RTX’s 2026 sales and earnings per share (EPS) implies an improvement of 5.4% and 8.3%, respectively, year over year. RTX’s near-term EPS estimates have improved over the past 60 days.

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The Zacks Consensus Estimate for LHX’s 2026 sales and earnings per share (EPS) implies an improvement of 7.2% and 8.9%, respectively, year over year. The stock’s near-term EPS estimates have shown a downward movement over the past 60 days.

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Stock Price Performance: RTX vs. LHX

LHX has outperformed RTX in the past year. Shares of LHX have surged 63.9% compared with RTX’s growth of 43.2%.

Image Source: Zacks Investment Research

RTX’s Valuation More Attractive Than LHX

RTX is trading at a forward earnings (P/E F12M) multiple of 27.19X compared with LHX’s forward earnings multiple of 28.59X, making the former relatively more attractive from a valuation perspective.

Image Source: Zacks Investment Research

Conclusion

In conclusion, both RTX and LHX are well-positioned in the aerospace and defense space, supported by strong demand and ongoing technological developments. RTX is making steady progress in areas like missile systems and next-generation aviation, while LHX continues to expand its defense capabilities and production capacity.

Both companies are expected to grow in 2026. However, RTX stands out with improving earnings estimate trends and a slightly more attractive valuation. While LHX has delivered stronger stock performance over the past year, its estimate revisions have moved lower in the near term.

Overall, RTX appears to have a slight edge as a more balanced long-term investment, while LHX remains a solid defense focused option.

RTX currently carries a Zacks Rank #2 (Buy), while LHX carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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

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