RTX Corporation, an aerospace and defense company, provides systems and services for the commercial, military, and government customers in the United States and internationally. It operates through three segments: Collins Aerospace, Pratt & Whitney, and Raytheon. The Collins Aerospace Systems segment offers aerospace and defense products, and aftermarket service solutions for civil and military aircraft manufacturers and commercial airlines, as well as regional, business, and general aviation, defense, and commercial space operations. This segment also designs, produces, and supports cabin interior, including oxygen systems, food and beverage preparation, storage and galley systems, and lavatory and wastewater management systems; battlespace, test and training range systems, crew escape systems, and simulation and training solutions; information management services; and aftermarket services that include spare parts, overhaul and repair, engineering and technical support, training and fleet management solutions, and asset and information management services. Its Pratt & Whitney segment supplies aircraft engines for commercial, military, business jet, and general aviation customers; and produces, sells, and services military and commercial auxiliary power units. The Raytheon segment provides defensive and offensive threat detection, tracking, and mitigation capabilities for U.S., foreign government, and commercial customers. The company was formerly known as Raytheon Technologies Corporation and changed its name to RTX Corporation in July 2023. RTX Corporation was incorporated in 1934 and is headquartered in Arlington, Virginia.

RTX looks like a high-quality but no longer cheap industrial asset: revenue, profit, and operating income are growing, while operating margin and net margin are gradually improving. At the same time, P/E, P/S, P/B, and P/FCF are noticeably above the industry median, which limits rerating potential and suggests that the market is already pricing in strong expectations. P/S stands out in particular at more than twice the sector median, and P/B is also significantly above normal, so the valuation looks demanding in terms of further growth. On the other hand, leverage is moderate: debt/equity is below the median and has been declining over the years, while long-term debt is also decreasing, which supports financial stability. Liquidity remains a weak point, as the quick ratio and current ratio are below industry benchmarks and do not show a meaningful margin of safety. Returns on equity and assets are below the sector median, although ROE, ROA, and ROI are gradually improving, which softens the negative effect. Gross margin looks weaker than the industry and has changed little, so profit growth is being driven more by scale and operating discipline than by strong pricing power. Cash flow, as reflected by the P/FCF multiple, does not look cheap, which further limits the case for an aggressive valuation increase. Dividend yield has dropped to zero, removing one of the support factors for an income-oriented investor. At the same time, growth in cash on hand, earnings, EBITDA, and shareholders’ equity shows that the business remains financially strong and is expanding. Overall, the fundamentals support the current valuation more than they justify a significant increase in it. For an investor, this implies a moderately positive but already fairly valued price level with limited upside unless earnings accelerate or liquidity improves.

RTX Corporation

Сильный индекс, без изменений. Быки в растерянности.

Strong index, flat. The bulls are confused.

Слабый индекс, значительно упал. Медведи продолжают терять уверенность.

Weak index, significantly down. Bears continue to lose confidence.

Сильный индекс, значительно упал. Рынок на стороне быков.

Strong index, significantly down. The market is on the bulls' side.

Средний индекс, значительно вырос. Рынок не поддерживает медведей.

Medium index, significantly up. The market does not support the bears.

Средний индекс, незначительно упал. Приток средств в лонги снизился, но остается положительным.

Medium index, slightly down. The inflow of funds into longs has decreased, but remains positive.

Слабый индекс, незначительно вырос. Отток средств из шортов остается значительным.

Weak index, slightly up. The outflow of funds from shorts remains significant.

RTX shows revenue and profit growth with moderate debt, but the valuation is already expensive on P/E, P/S, and P/B, while liquidity and gross margin remain weak.

Investors interested in Aerospace - Defense stocks are likely familiar with Embraer (EMBJ) and RTX (RTX). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, both Embraer and RTX are holding a Zacks Rank of #2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
EMBJ currently has a forward P/E ratio of 23.80, while RTX has a forward P/E of 30.48. We also note that EMBJ has a PEG ratio of 1.66. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. RTX currently has a PEG ratio of 2.62.
Another notable valuation metric for EMBJ is its P/B ratio of 3.41. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, RTX has a P/B of 4.32.
These are just a few of the metrics contributing to EMBJ's Value grade of B and RTX's Value grade of C.
Both EMBJ and RTX are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that EMBJ is the superior value option right now.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

EMBJ or RTX: Which Is the Better Value Stock Right Now?

General Dynamics Corporation GD reported second-quarter 2026 earnings of $4.24 per share, beating the Zacks Consensus Estimate of $3.95 by 7.3%. The bottom line increased 13.4% from $3.74 in the year-ago quarter, reflecting higher operating earnings and lower net interest expense.
Total Revenues of GD
Revenues of $14.09 billion surpassed the consensus mark of $13.49 billion by 4.5% and rose 8.1% year over year. Growth across all four segments, led by Aerospace and Marine Systems, supported the top line.
General Dynamics Corporation Price, Consensus and EPS Surprise
GD’s Segmental Performance
Aerospace revenues increased 15.1% year over year to $3.53 billion. Operating earnings surged 26.6% to $510 million. The operating margin expanded 130 basis points to 14.5%.
Marine Systems revenues advanced 10.4% to $4.66 billion. Operating earnings increased 17.5% to $342 million. The segment’s operating margin improved 40 basis points to 7.3%.
Combat Systems revenues were $2.29 billion, up 0.3% from the prior-year quarter. However, operating earnings declined 1.9% to $318 million, while the operating margin contracted 30 basis points to 13.9%.
Technologies revenues increased 4.1% year over year to $3.62 billion. Operating earnings improved 2.1% to $339 million. The operating margin declined 20 basis points to 9.4%.
Operational Highlights of GD
Operating earnings totaled $1.46 billion, up 11.9% from the year-ago quarter’s $1.31 billion.
Operating costs and expenses increased 7.7% year over year to $12.63 billion.
Interest expenses decreased 44.3% year over year to $49 million.
GD’s Backlog
General Dynamics recorded a total backlog of $186.9 billion. This includes a backlog of $136.5 billion and estimated potential contract value, representing management’s estimate of additional value in unfunded indefinite delivery, indefinite quantity contracts and unexercised options of $50.4 billion.
Financial Condition of GD
As of July 5, 2026, cash and cash equivalents totaled $4.33 billion compared with $2.33 billion as of Dec. 31, 2025.
The long-term debt as of the same date was $6.26 billion compared with the 2025-end debt level of $7.01 billion.
During the first six months of 2026, cash generated by operating activities totaled $4.04 billion compared with $1.45 billion in the year-ago period.
GD’s Zacks Rank
GD currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
RTX Corporation’s RTX second-quarter 2026 adjusted earnings per share (EPS) of $1.89 beat the Zacks Consensus Estimate of $1.66 by 13.9%. The bottom line improved 21.1% from the year-ago quarter’s level of $1.56.
Revenues rose 14.5% year over year to $24.71 billion and outpaced the consensus mark of $22.83 billion by 8.2%.
Northrop Grumman Corporation NOC reported second-quarter 2026 adjusted earnings of $7.68 per share, which beat the Zacks Consensus Estimate of $6.84 by 12.3%. The bottom line, however, declined 5.8% from the year-ago quarter’s level of $8.15.
NOC’s total sales of $10.88 billion in the second quarter outperformed the Zacks Consensus Estimate of $10.80 billion by 0.7%. The top line also improved 5.1% from $10.35 billion reported in the year-ago quarter.
Textron Inc. TXT reported second-quarter 2026 adjusted earnings of $1.62 per share, which surpassed the Zacks Consensus Estimate of $1.52 by 6.6%. The bottom line also rose 4.5% from $1.55 in the year-ago quarter.
The company reported total revenues of $3.83 billion, which beat the Zacks Consensus Estimate of $3.82 billion by 0.15%. The top line also increased 3% from the year-ago quarter’s level of $3.72 billion.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

General Dynamics' Q2 Earnings Surpass Estimates, Revenues Improve Y/Y

For Immediate Release
Chicago, IL – July 29, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Alphabet Inc. GOOGL, Advanced Micro Devices, Inc. AMD and RTX Corp. RTX.
Here are highlights from Tuesday’s Analyst Blog:
Top Analyst Reports for Alphabet, AMD and RTX
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Alphabet Inc., Advanced Micro Devices, Inc. and RTX Corp. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Today's Featured Research Reports
Alphabet’s shares have outperformed the Zacks Internet - Services industry over the past year (+67.3% vs. +58.6%). The company’s AI-led product cycle continues to support growth across Search, Cloud and subscriptions. AI features are lifting query activity and improving ad relevance, while Cloud demand is expanding across infrastructure, models and security.
A larger backlog improves revenue visibility, and rising adoption of Gemini broadens the company’s reach across consumers, developers and enterprises. Alphabet also retains substantial liquidity to fund infrastructure and strategic investment. These gains are offset by heavier capital needs, higher debt and near-term free cash flow strain.
Advertising concentration leaves results exposed to budget shifts, while potential legal remedies and intense competition could alter long-term economics. The Neutral view reflects durable AI momentum balanced by execution, spending and regulatory risk.
(You can read the full research report on Alphabet here >>>)
Shares of AMD have outperformed the Zacks Computer - Integrated Systems industry over the past six months (+79.7% vs. +58.4%). The company is benefiting from rising AI infrastructure deployments that lift demand for EPYC server CPUs and Instinct accelerators across cloud and enterprise customers. Data Center revenue grew 57% year over year in the first quarter of 2026, and second-quarter revenue is guided higher as supply and customer ramps broaden.
Helios and MI450 engagements are expanding with large customers, and management continues to target scaling the data center AI business to tens of billions in annual revenue in 2027. Strong partner base that includes AWS and Oracle is a positive.
Record quarterly free cash flow and ongoing repurchases add support, but competition from NVIDIA and Intel remains intense. Higher memory and component costs are expected to curb second-half PC and gaming demand and can pressure gross margin as MI450 ramps.
(You can read the full research report on AMD here >>>)
RTX’s shares have outperformed the Zacks Aerospace - Defense industry over the past six months (+11.2% vs. -2.3%). The company’s second-quarter 2026 earnings and revenues beat estimates. This is supported by a steady recovery in commercial aerospace, strong defense orders and a robust backlog. Rising global air traffic, higher commercial OEM and aftermarket sales and strong demand for large commercial engines should aid growth.
RTX’s defense business remains well-positioned, backed by strong bookings from the Pentagon and foreign allies. RTX ended the second quarter of 2026 with a backlog of $289 billion.
However, persistent supply-chain disruptions remain a concern. Aircraft engine availability issues may affect production and deliveries. Tariff-related uncertainty and expanded Russia-linked sanctions also pose risks to RTX’s operations. We have a Neutral rating on RTX shares.
(You can read the full research report on RTX here >>>)
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The Zacks Analyst Blog Highlights Alphabet, Advanced Micro Devices and RTX

Tuesday, July 28, 2026
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Alphabet Inc. (GOOGL), Advanced Micro Devices, Inc. (AMD) and RTX Corp. (RTX). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Ahead of Wall Street
The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens, attempting to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.
You can read today's AWS here >>> Mostly Quiet Ahead of Fed Decision
Today's Featured Research Reports
Alphabet’s shares have outperformed the Zacks Internet - Services industry over the past year (+67.3% vs. +58.6%). The company’s AI-led product cycle continues to support growth across Search, Cloud and subscriptions. AI features are lifting query activity and improving ad relevance, while Cloud demand is expanding across infrastructure, models and security.
A larger backlog improves revenue visibility, and rising adoption of Gemini broadens the company’s reach across consumers, developers and enterprises. Alphabet also retains substantial liquidity to fund infrastructure and strategic investment. These gains are offset by heavier capital needs, higher debt and near-term free cash flow strain.
Advertising concentration leaves results exposed to budget shifts, while potential legal remedies and intense competition could alter long-term economics. The Neutral view reflects durable AI momentum balanced by execution, spending and regulatory risk.
(You can read the full research report on Alphabet here >>>)
Shares of AMD have outperformed the Zacks Computer - Integrated Systems industry over the past six months (+79.7% vs. +58.4%). The company is benefiting from rising AI infrastructure deployments that lift demand for EPYC server CPUs and Instinct accelerators across cloud and enterprise customers. Data Center revenue grew 57% year over year in the first quarter of 2026, and second-quarter revenue is guided higher as supply and customer ramps broaden.
Helios and MI450 engagements are expanding with large customers, and management continues to target scaling the data center AI business to tens of billions in annual revenue in 2027. Strong partner base that includes AWS and Oracle is a positive.
Record quarterly free cash flow and ongoing repurchases add support, but competition from NVIDIA and Intel remains intense. Higher memory and component costs are expected to curb second-half PC and gaming demand and can pressure gross margin as MI450 ramps.
(You can read the full research report on AMD here >>>)
RTX’s shares have outperformed the Zacks Aerospace - Defense industry over the past six months (+11.2% vs. -2.3%). The company’s second-quarter 2026 earnings and revenues beat estimates. This is supported by a steady recovery in commercial aerospace, strong defense orders and a robust backlog. Rising global air traffic, higher commercial OEM and aftermarket sales and strong demand for large commercial engines should aid growth.
RTX’s defense business remains well-positioned, backed by strong bookings from the Pentagon and foreign allies. RTX ended the second quarter of 2026 with a backlog of $289 billion.
However, persistent supply-chain disruptions remain a concern. Aircraft engine availability issues may affect production and deliveries. Tariff-related uncertainty and expanded Russia-linked sanctions also pose risks to RTX’s operations. We have a Neutral rating on RTX shares.
(You can read the full research report on RTX here >>>)
Other noteworthy reports we are featuring today include United Rentals, Inc. (URI), Nasdaq, Inc. (NDAQ) and Ameriprise Financial, Inc. (AMP).
Mark Vickery
Senior Editor
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Alphabet's (GOOGL) Prospects Rides on Cloud & Search Initiatives
Strong Product Portfolio & Rich Partner Base Aid AMD's Prospects
Featured Reports
United Airlines (UAL) Rides on Air Travel Demand, Labor Costs Ail
Per the Zacks analyst, strong air travel demand and diversified revenue streams are aiding United Airlines' top-line growth. However, increased labor and fuel costs weigh on the bottom line.
Application Software Unit Aids Roper (ROP) Amid Rising Costs
Per the Zacks analyst, Roper's Application Software unit is driven by solid momentum across the Aderant, Deltek, Vertafore and CentralReach businesses. However, High operating costs remain a concern.
Ovintiv (OVV) to Gain from Multi-Basin, liquids-rich Assets
The Zacks analyst likes Ovintiv's well-established presence in some of North America's highest-quality oil and gas basins but is worried over its increasing costs and expenses.
Growth in Industrial Segment Aids Genuine Parts (GPC) Amid High Costs
Per the Zacks analyst, Genuine Parts' Industrial segment, led by Motion, is currently the company's biggest growth engine. However, persistent inflation is likely to hurt its margins.
Service Corporation' (SCI) Likely to Benefit From Preneed Momentum
Per the Zacks analyst, Service Corporation's expanding preneed backlog and solid sales execution likely to support steady long-term revenue growth by improving revenue visibility and conversion.
Xenon (XENE) Lead Candidate Progressing Well, Dependency a Woe
Per the Zacks analyst, Xenon's clinical studies on azetukalner for treating epilepsy and other neuro disorders are progressing well. However, the lack of other candidates in its pipeline is a woe.
Wix Drives Growth with AI, Studio & Commerce Innovations
Per the Zacks analyst, Wix benefits from rising e-commerce spending, strong core business momentum, and new user growth, while strategically investing in AI, Studio, and commerce solutions.
New Upgrades
Strong Rental Activity & Specialty Growth Aid United Rentals (URI)
Per the Zacks analyst, United Rentals benefits from record rental activity, higher fleet productivity and strong specialty demand. Also, large-project activity and customer backlogs bode well.
Accelerating Non-Trading Revenue Base Aids Nasdaq (NDAQ)
Per the Zacks analyst, Nasdaq is set to grow on its focus toward Market Technology and Information Services businesses, growth from index and analytics businesses, as well as exchange data products.
AUM Growth, Portfolio Optimization to Aid Ameriprise (AMP) Top Line
Per the Zacks analyst, Ameriprise's record assets under management and administration balance along with expanding AI capabilities and its strategic portfolio optimization efforts will aid revenues.
New Downgrades
Soft Demand and Adverse Product Mix Weigh on Diageo's (DEO) Outlook
Per the Zacks analyst, Diageo continues to face weak consumer demand, resulting in volume declines, unfavorable product mix and sales pressure. These challenges are weighing on earnings prospects.
Escalating Expenses Pose a Margin Headwind for Hartford (HIG)
Per the Zacks analyst, Hartford's rising benefits, losses and loss adjustment expenses can put margins under pressure. A debt-laden balance sheet induces a rise in interest expenses.
Macroeconomic Woes, Elevated Debt Weighs on Zimmer Biomet (ZBH)
The Zacks analyst is worried about macroeconomic pressures, including tariffs and pricing erosion risk, weighing on Zimmer Biomet's profitability. Debt exceeding cash reserves is concerning too.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Nasdaq, Inc. (NDAQ) : Free Stock Analysis Report
United Rentals, Inc. (URI) : Free Stock Analysis Report
RTX Corporation (RTX) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Top Analyst Reports for Alphabet, AMD & RTX

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.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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

Geopolitical tensions have been a significant headwind for financial markets in 2026, with the conflict in the Middle East fueling uncertainty and volatility. Yet, the same backdrop has created a favorable environment for the defense sector, supported by expectations of higher military spending.
With military exchanges between Washington and Tehran becoming more intense, the risk of a broader regional conflict has increased. The concerns of a wider regional war have been reinforced after President Trump stated that a decision on launching a "massive attack" on Iran is imminent, as the Middle East conflict spread to the Red Sea, as quoted on CNBC.
The defense sector remains well-positioned in the current environment, as it has historically outperformed during periods of heightened geopolitical tensions and increased military activity. At the same time, President Trump has urged defense contractors to expand manufacturing capacity and increase weapons production.
The industry's outlook has been further strengthened by policy support. The U.S. House of Representatives advanced the fiscal 2027 National Defense Authorization Act (NDAA), authorizing a record $1.15 trillion in military spending, as per Reuters.
Adding to the positive backdrop, several defense companies delivered robust second-quarter 2026 earnings.
Earnings in Focus
Below, we have discussed in brief the second-quarter results of a few renowned U.S. Aerospace – Defense industry players.
Lockheed Martin
Lockheed Martin LMT reported second-quarter 2026 adjusted earnings of $7.94 per share, which beat the Zacks Consensus Estimate of $7.22 by 10%. The bottom line increased 8.9% from the year-ago quarter's reported figure of $7.29.
Net sales were $20.06 billion, which beat the Zacks Consensus Estimate of $19.34 billion by 3.7%. The top line inched up 10.5% from $18.16 billion reported in the year-ago quarter. The year-over-year improvement was driven by higher sales growth registered by LMT’s business segments.
LMT’s backlog, as of June 28, 2026, was $230.42 billion compared with $193.62 billion as of Dec. 31, 2025. The Aeronautics segment accounted for $54.36 billion of the total backlog amount, while the Missiles and Fire Control segment contributed $87.88 billion. The Rotary and Mission Systems segment contributed $48.45 billion, while the Space unit accounted for $39.72 billion.
The company has a Momentum Score of A. LMT came up with second-quarter 2026 earnings on July 23, before market open and gained around 10.54% on the same day.
RTX Corporation
RTX Corporation’s RTX second-quarter 2026 adjusted earnings per share (EPS) of $1.89 beat the Zacks Consensus Estimate of $1.66 by 13.9%. The bottom line improved 21.1% from the year-ago quarter’s level of $1.56.
Revenues rose 14.5% year over year to $24.71 billion and beat the consensus mark of $22.83 billion by 8.2%. Growth was supported by higher commercial aftermarket and defense demand. Organic sales advanced 16% in the quarter.
Backlog climbed 22% to $289 billion. The company secured $43 billion of new awards during the quarter, including nearly $20 billion at Raytheon. The total backlog comprised $170 billion of commercial orders and $119 billion of defense orders, providing strong visibility into future production requirements.
RTX has a Zacks Rank #2 (Buy) with a VGM Score of C. The company released second-quarter 2026 earnings on July 23, before market open and gained around 7.3% on the same day.
Northrop Grumman
Northrop Grumman NOC reported second-quarter 2026 adjusted earnings of $7.68 per share, which beat the Zacks Consensus Estimate of $6.84 by 12.3%. The bottom line, however, declined 5.8% from the year-ago quarter’s level of $8.15.
NOC’s total sales of $10.88 billion in the second quarter beat the Zacks Consensus Estimate of $10.80 billion by 0.7%. The top line also improved 5.1% from $10.35 billion reported in the year-ago quarter. Total operating income during the quarter was $1.10 billion, reflecting a significant decrease from $1.43 billion in the prior-year quarter.
The company’s total backlog was $95.68 billion at the end of the second quarter compared with $95.61 billion at the end of first-quarter 2026.
The company has a Momentum Score of A. NOC came up with second-quarter 2026 earnings on July 21, before market open and has since gained around 10%.
Defense ETFs to Consider
For investors looking to bet on second-quarter results as well as the continued surge in military spending, the following Defense ETFs provide a great opportunity.
Investors can consider iShares U.S. Aerospace & Defense ETF ITA, Invesco Aerospace & Defense ETF PPA, SPDR S&P Aerospace & Defense ETF XAR, Global X Defense Tech ETF SHLD, First Trust Indxx Aerospace & Defense ETF MISL and U.S. Global Technology and Aerospace & Defense ETF WAR.
Boost Your Portfolio with Our Top ETF Insights
Zacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.
Don’t miss out on this valuable resource. It’s free!
Get it now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Defense ETFs in Focus Amid Earnings, Conflict and Military Spending

Data is currently not available
Edit My Quotes
Add up to 25 symbols
To add symbols:
Type a symbol or company name. When the symbol you want to add appears, add it to My Quotes by selecting it and pressing Enter/Return.
Copy and paste multiple symbols separated by spaces.
These symbols will be available throughout the site during your session.
Save data
Data is currently not available
Edit My European Quotes
Add up to 25 instruments
To add instruments:
Type a instrument or company name. When the instrument you want to add appears, add it to My European Quotes by selecting it and pressing Enter/Return.
Copy and paste multiple instruments separated by spaces.
These instruments will be available throughout the site during your session.
Save data
Data is currently not available
Your symbols have been updated
You'll now be able to see real-time price and activity for your symbols on the My Quotes of Nasdaq.com.
Continue
Data is currently not available
Edit Watchlist
Add up to 20 symbols
To add symbols:
Type a symbol or company name. When the symbol you want to add appears, add it to Watchlist by selecting it and pressing Enter/Return.
Copy and paste multiple symbols separated by spaces.
These symbols will be available throughout the site during your session.
Save data

RTX (RTX) Q2 2026 Earnings Call Transcript

In trading on Thursday, the Global X Defense Tech ETF is outperforming other ETFs, up about 2.8% on the day. Components of that ETF showing particular strength include shares of Lockheed Martin, up about 8.9% and shares of RTX, up about 6.8% on the day.
And underperforming other ETFs today is the State Street Consumer Discretionary Select Sector SPDR ETF, off about 4.7% in Thursday afternoon trading. Among components of that ETF with the weakest showing on Thursday were shares of Tesla lower by about 14.2%, and shares of NVR, lower by about 4.8% on the day.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Thursday's ETF Movers: SHLD, XLY

Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Microsoft Corporation (Symbol: MSFT), where a total of 402,636 contracts have traded so far, representing approximately 40.3 million underlying shares. That amounts to about 92.4% of MSFT's average daily trading volume over the past month of 43.6 million shares. Particularly high volume was seen for the $400 strike call option expiring July 24, 2026, with 18,239 contracts trading so far today, representing approximately 1.8 million underlying shares of MSFT. Below is a chart showing MSFT's trailing twelve month trading history, with the $400 strike highlighted in orange:
RTX Corp (Symbol: RTX) options are showing a volume of 34,292 contracts thus far today. That number of contracts represents approximately 3.4 million underlying shares, working out to a sizeable 78.6% of RTX's average daily trading volume over the past month, of 4.4 million shares. Particularly high volume was seen for the $165 strike put option expiring August 21, 2026, with 2,707 contracts trading so far today, representing approximately 270,700 underlying shares of RTX. Below is a chart showing RTX's trailing twelve month trading history, with the $165 strike highlighted in orange:
And TE Connectivity plc (Symbol: TEL) options are showing a volume of 20,799 contracts thus far today. That number of contracts represents approximately 2.1 million underlying shares, working out to a sizeable 78.1% of TEL's average daily trading volume over the past month, of 2.7 million shares. Especially high volume was seen for the $240 strike call option expiring August 21, 2026, with 10,002 contracts trading so far today, representing approximately 1.0 million underlying shares of TEL. Below is a chart showing TEL's trailing twelve month trading history, with the $240 strike highlighted in orange:
For the various different available expirations for MSFT options, RTX options, or TEL options, visit StockOptionsChannel.com.
Further MSFT Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Notable Thursday Option Activity: MSFT, RTX, TEL

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell Top 200 Value ETF (Symbol: IWX) where we have detected an approximate $189.1 million dollar inflow -- that's a 4.9% increase week over week in outstanding units (from 35,550,000 to 37,300,000). Among the largest underlying components of IWX, in trading today AbbVie Inc (Symbol: ABBV) is up about 1.1%, RTX Corp (Symbol: RTX) is up about 7.7%, and Costco Wholesale Corp (Symbol: COST) is lower by about 1%. For a complete list of holdings, visit the IWX Holdings page » The chart below shows the one year price performance of IWX, versus its 200 day moving average:
Looking at the chart above, IWX's low point in its 52 week range is $82.7834 per share, with $109.16 as the 52 week high point — that compares with a last trade of $107.35. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Further IWX Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.