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RTX's Rally Overly Fast & Furious — Wait For More Downsides Ahead
We previously covered RTX Corporation (NYSE:RTX) (RTX:CA) in March 2025, discussing its great prospects across commercial and defense end
RTX Corporation: Robust Long-Term Set Up - Wait For Dips
Summary
- RTX has already benefited from the robust defense/travel spending trends, as observed in the growing backlogs and expanding organic sales.
- Despite the ~$850M potential tariff impact on its annualized adj operating profit, we believe that the bottom-line impact may be temporary.
- This is especially true since 70% of RTX's manufacturing capacity and 65% of its suppliers are based within the US, as the management also intensifies their US-based manufacturing capacity expansions.
- The rich profitability has also triggered its rich shareholder returns across share repurchase/dividend payouts, despite the prior powder metal issues.
- For now, RTX's faltering upward momentum signals a potential retracement ahead, with investors well advised to monitor its near-term movement.
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