RTX Stock Analysis: Buy, Sell, or Hold?
RTX - RTX Corporation
$175.68
-2.43 (-1.36%)
▼
5d:
-0.62%
30d:
-11.45%
90d:
-12.66%
BUY
HIGH Confidence
Analysis Updated: May 14, 2026 12:00 AM ET
Earnings: Jul 21, 2026
Smart Money Accumulation
RTX is down 4.5% this week, but smart money is accumulating calls. Top strike: $220 2026-06-18 with 14,532 OI. Call ratio: 68% View Scanner →
Strength: 9.0/10
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6 traders called RTX this week
100% bullish • 0 bearish
100% bullish • 0 bearish
Interactive Price Chart (1 Month)
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Bottom Line:
✅ BUY SIGNAL: RTX appears deeply undervalued. Market expects -3.7% annual earnings decline despite 32% recent earnings growth. Contrarian opportunity at discount to historical valuation.
✅ BUY SIGNAL: RTX appears deeply undervalued. Market expects -3.7% annual earnings decline despite 32% recent earnings growth. Contrarian opportunity at discount to historical valuation.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$260.21
Based on 6.7% avg growth
INTRINSIC VALUE TODAY
$161.57
Trading above historical range
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 25.0x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: RTX is currently trading at $175.68, which is considered slightly low relative to its 30-day fair value range of $173.78 to $196.93. From a valuation perspective, the stock is trading at a discount (Forward PE: 23.6) compared to its historical average (26.4). Remarkably, the market is currently pricing in an annual earnings decline of 3.7% over the next few years. This pessimistic expectation contrasts with the company's recent 32.5% earnings growth, suggesting potential undervaluation if the company simply maintains stability.
Technical Outlook: Technically, RTX is in a strong uptrend. The price is currently testing key support at $171.19. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: The stock shows a mixed technical setup (45/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $216.16 (+21.4%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, RTX is in a strong uptrend. The price is currently testing key support at $171.19. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: The stock shows a mixed technical setup (45/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $216.16 (+21.4%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
SLIGHTLY LOW
Historical Trading Range
$173.78 -
$196.93
Company Quality Score
61/100
(BUY)
Volume Confirmation
HIGH
Confidence Score
79.5%
All Signals
- BULLISH: Price oversold vs 30-day range
- NEUTRAL: Mixed technical signals (45/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 21.4% below Wall St target ($216.16)
Trading Range Analysis
30-Day Trading Range
$173.78 -
$196.93
Current vs Trading Range
SLIGHTLY LOW
Support & Resistance Levels
Support Level
$171.20
Resistance Level
$179.93
Current Trend
Strong Uptrend
Technical data as of
May 14, 2026
Fundamental Context
Forward P/E (Next Year Est.)
23.59
Wall Street Target
$216.16
(+21.4%)
Revenue Growth (YoY)
8.7%
Earnings Growth (YoY)
32.5%
Profit Margin
8.0%
Valuation Discount vs History
-3.7% cheaper
PE vs Historical
23.6 vs 26.4
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-3.7%
(market-implied from PE analysis)
1-Year Target
$171.52
(-4%)
2-Year Target
$165.17
(-7%)
3-Year Target
$159.06
(-11%)
3-Yr Target (if PE normalizes)
(PE: 24→26)
$177.99
(0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 23.6, Growth: 9.3%)
$232.69
(+31%)
Base:
(SPY PE: 22.0, Growth: 9.3%)
$217.38
(+22%)
Bear:
(PE: 18.7, Growth: 9.3%)
$184.77
(+4%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (34x PE), but valuation improves significantly next year (24x PE) as earnings recover.
Trailing PE: 33.56 | Current EPS (TTM): $5.33
Bull Case
$278.72
(+57%)
Analyst growth 41.6%, PE expands to 36.9
Base Case
$253.38
(+42%)
Market implied 41.6%, PE stable at 33.6
Bear Case
$121.65
(-32%)
Severe decline -20.0%, PE contracts to 28.5
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 23.6 to 26.4
Stabilization Target:
$199.31
(+11.9%)
PE Expansion Potential:
+11.9%
Share & Embed Analysis
Last updated: May 14, 2026 4:34 PM ET
Data refreshes hourly during market hours. Next update: 5:34 PM
Data refreshes hourly during market hours. Next update: 5:34 PM
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Technical Signals Check
Is RTX showing a specific setup today?
Insider Activity (6 Months)
3
Buys
6
Sells
Net
INSIDERS SELLING
Recent Transactions
Dantaya M Williams
SELL
12713 shares
2026-02-23
Neil G Mitchill Jr
SELL
35755 shares
2026-02-19
Ramsaran Maharajh
SELL
15124 shares
2026-02-19
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Advanced RTX Option Strategies
Professional options setups generated by AI based on today's RTX price and gamma walls.
