RTX Inc. P/E Ratio Analysis: A Closer Look at the Aerospace & Defense Industry

RTX Inc. is trading at $160.90, up 0.15% today. Over the past month, the stock has increased by 1.30%, and in the past year, by 31.29%. The price-to-earnings ratio of 35.31 is lower than the Aerospace & Defense industry's aggregate P/E ratio of 80.29, suggesting the stock might be undervalued or that investors expect poor future performance. Investors should use the P/E ratio in conjunction with other financial metrics and qualitative analysis to make informed investment decisions.

RTX Inc. (NYSE: RTX), a leading aerospace and defense company, has seen its stock price rise to $160.90, up 0.15% today. Over the past month, the stock has increased by 1.30%, and in the past year, by 31.29%. The price-to-earnings (P/E) ratio of 35.31 is lower than the Aerospace & Defense industry's aggregate P/E ratio of 80.29, suggesting that the stock might be undervalued or that investors expect poor future performance. However, investors should use the P/E ratio in conjunction with other financial metrics and qualitative analysis to make informed investment decisions.

RTX delivered strong Q2 results, with sales up 9% and earnings per share (EPS) exceeding estimates, despite headwinds from tariffs and work stoppages [1]. The company's revenue for 2024 was $80.74 billion, an increase of 17.15% compared to the previous year's $68.92 billion. Earnings were $4.77 billion, an increase of 49.42% [2].

The company's stock has reached an all-time high, touching $158.79 USD, with a year-to-date return of 37.02%. The stock’s performance reflects strong investor confidence and robust business fundamentals, supported by 15.44% revenue growth and a steady 1.74% dividend yield [2].

RTX has secured a significant $50 billion umbrella contract from the Defense Logistics Agency, covering systems production, spare parts, and support services. Additionally, Raytheon, a business under RTX, has been awarded a $258.7 million contract by the U.S. Department of Defense for the development of the Standard Missile 2 (SM-2) Block IIICU All Up Round [2].

Collins Aerospace, also part of RTX, has started providing JetBlue with its FlightAware Foresight technology, a predictive analytics tool aimed at enhancing flight operations. Velo3D, Inc. has also announced its participation in a U.S. Army-funded initiative to advance aluminum manufacturing for defense applications [2].

The average rating for RTX stock is "Buy" by 12 analysts, with a 12-month stock price target of $163.08, an increase of 2.83% from the latest price [2].

RTX's Chairman and CEO, Chris Calio, will present at the Morgan Stanley 13th Annual Laguna Conference on September 3, 2025 [3]. The company's strategic moves and strong financial performance have driven investor confidence and stock performance.

References:
[1] RTX Corporation: You Should Not Ignore This Aerospace And Defense Powerhouse, Seeking Alpha, 2 days ago
[2] RTX Corp stock has reached an all-time high at $158.79 USD, Investing.com, 2 days ago
[3] RTX Chairman and CEO to present at the Morgan Stanley 13th Annual Laguna Conference, PRNewsWire, 3 days ago