RTX Corporation (RTX), the aerospace and defense giant, has been on a tear recently, with its stock price hitting a record high of $138.41 on February 7, 2020. Since then, the stock has continued to perform well, with a 52-week high of $128.70 and an average stock price of $105.01. But the question on investors' minds is: Can RTX stock hit another record high, and if so, what factors will drive its performance?



One key factor driving RTX's recent success is its strong financial performance. In the third quarter of 2024, RTX reported adjusted sales* of $20.1 billion, up 6% versus the prior year, and adjusted EPS* of $1.45, up 16% versus the prior year. The company also reported a record backlog of $221 billion, including $131 billion of commercial and $90 billion of defense. Additionally, RTX increased its full-year 2024 outlook for adjusted sales* and adjusted EPS*, reflecting the company's confidence in its ability to execute on its strategic priorities and drive long-term shareowner value.

Another factor contributing to RTX's stock price surge is its ability to integrate and realize synergies from its merger with United Technologies. In the third quarter of 2024, RTX realized $90 million of incremental RTX gross cost synergies, achieving the $2 billion post-merger target. This demonstrates the company's ability to integrate and realize synergies, which is a key driver of its stock price appreciation.



RTX's strong earnings performance also contributes to its stock price. The company's earnings per share (EPS) have increased from $2.23 in 2020 to $5.63 in 2024, a 152.49% increase. This growth in EPS has been accompanied by a corresponding increase in the company's stock price, which has risen from $64.93 in 2020 to $118.10 in 2024, a 79.27% increase. Furthermore, RTX's strong earnings performance has allowed the company to maintain a low debt-to-equity ratio, which is another important factor in maintaining a high stock price.

Market sentiment and analyst ratings also play a crucial role in RTX's stock price trajectory. Positive sentiment and favorable analyst ratings can boost investor confidence, leading to increased buying activity and higher stock prices. As of the latest data, 14 analysts have provided 12-month price targets for RTX stock, with an average target of $132.86. The lowest target is $104, and the highest is $151. The average target predicts an increase of 14.61% from the current stock price of $115.92. The average analyst rating for RTX stock is "Buy," indicating that analysts believe this stock is likely to outperform the market over the next twelve months.



In conclusion, RTX's recent stock price surge can be attributed to several key fundamentals, including strong financial performance, the realization of synergies from its merger with United Technologies, and robust earnings growth. Market sentiment and analyst ratings also play a crucial role in driving RTX's stock price higher. As the company continues to execute on its strategic priorities and deliver strong financial results, investors can expect RTX's stock price to remain resilient and potentially hit another record high. However, it is essential to monitor the company's performance and the broader market conditions to make informed investment decisions.