RTX (RTX) closed at $120.84 in the latest trading session, marking a +1.13% move from the prior day.
RTX's NGJ-MB offers enhanced airborne electronic attack capabilities to fighter aircraft.
RTX offers a good balance of businesses. Lockheed Martin is expanding its position as a leading space stock with an upcoming acquisition.
Whether in terms of earnings or cash flow, RTX's dividend is sustainable and able to grow. The company's cash flow is likely to trough in 2024 and increase afterward.
RTX stock has surged 63% since my buy rating last year, outperforming the S&P 500. Q2 sales and adjusted earnings for RTX are up, driven by growth in Collins Aerospace and Pratt & Whitney. RTX guides up on sales and earnings, but down on free cash flow due to legal settlement and fixed-price contract charges.
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Investors were quick to forgive RTX's recently reported falloff in profit in Q2. Sales grew nicely and might have grown even faster but for a corporate restructuring.
RTX Corporation reported solid growth with a 10% increase in organic sales and a record backlog of $206 billion. The company generated $2.2 billion in free cash flow in the quarter and is on track to reach $7.5 billion in 2025. The stock has plenty more upside due to the likelihood of the company hiking growth rates, though the $140 BoA price target is a likely exit point.
RTX is soaring as it reports impressive earnings and strong demand in both defense and commercial sectors, outpacing broader market declines. Recent performance highlights include a 61% return since last October, driven by a robust backlog and significant R&D investments. Despite market volatility, RTX's solid fundamentals and increasing guidance justify a Strong Buy rating. I'm actively expanding my position in the stock.