RTX

Zacks Research Daily presents analysis of 16 major stocks on October 23, 2026. Apple receives a Neutral rating despite strong AI capabilities and device ecosystem, citing supply constraints and margin pressures.

Berkshire Hathaway maintains Neutral stance with balanced risk-reward profile. Goldman Sachs outperforms its industry with strong earnings, though rising spending concerns remain. Additional coverage includes Texas Instruments benefiting from AI data center demand, RTX facing supply chain challenges, and various other companies with mixed outlooks.

Q3 earnings season shows strong momentum with Valero Energy, RTX, and Interactive Brokers all posting record-breaking results. VLO reported adjusted EPS of $23.90 (beating consensus by 18%), RTX achieved a record $340 billion backlog with 27% EPS beat, and IBKR reached record customer accounts of 5.58 million with a 70% dividend increase. All three companies maintain favorable Zacks Ranks supporting near-term share performance.

RTX Corporation reported strong Q3 2026 results with EPS up 33% and revenues growing 11%, prompting the company to raise its full-year 2026 guidance for sales, earnings, and free cash flow. The company's record $340 billion backlog, driven by $70 billion in multiyear munitions contracts, provides visibility through 2030. Commercial aftermarket sales grew 16%, though supply-chain constraints and working capital pressures pose challenges for future production expansion.

RTX raised its full-year adjusted sales outlook to $97-$97.5 billion, driven by surging defense orders and steady commercial aerospace demand. The company secured $70 billion in undefinitized defense contracts providing decade-long demand visibility, commercial aftermarket sales grew 16% organically with over 800 GTF engine orders, and Collins Aerospace achieved double-digit organic sales growth while reducing costs through operational efficiency improvements.

The Vanguard Industrials Index Fund ETF Shares (VIS) is a passively managed ETF offering broad exposure to the industrials sector with low costs (0.09% expense ratio) and strong diversification across 400 holdings. Year-to-date returns are 7.55% with a 12-month return of 9.78%, earning a Zacks ETF Rank of 1 (Strong Buy). The fund holds major positions in Caterpillar, General Electric, and RTX Corp.

RTX Corporation is expected to report Q3 2026 results on October 20, 2026, with revenues projected to rise 6.8% to $24.01 billion and EPS growing 4.7% to $1.76. Strong aftermarket demand, aircraft production, and defense orders are expected to drive growth. RTX has an Earnings ESP of +0.70% and Zacks Rank of 2 (Buy), with a forward P/E of 24.44X trading below the industry average of 27.36X.

The U.S. defense sector experienced a nearly 19% decline from early August through mid-October 2026 due to rising Treasury yields, military spending uncertainty ahead of midterms, and supply-chain constraints. Despite headwinds, the Aerospace sector is expected to report 11.8% earnings growth supported by NATO spending commitments and strong backlogs. Key defense contractors like Lockheed Martin and RTX are scheduled to report Q3 results, with investors focusing on cash flow generation and contract execution amid a higher cost of capital environment.

RTX (Raytheon Technologies), an aerospace and defense company, has demonstrated a consistent track record of beating earnings estimates with an average surprise of 15.48% over the past two quarters. The company's positive Earnings ESP of +0.15% combined with its Zacks Rank #2 (Buy) rating suggests another earnings beat is likely in its next quarterly report expected on October 20, 2026.

RTX closed down 1.95% on October 13, 2026, underperforming the S&P 500's 0.02% loss. The aerospace and defense company has declined 4.44% over the past month while outperforming its sector's 6.85% loss.

RTX is scheduled to report earnings on October 20, 2026, with projected EPS of $1.75 (up 2.94% YoY) and revenue of $23.84 billion (up 6.06% YoY). The stock holds a Zacks Rank #2 (Buy) rating but trades at a premium valuation with a Forward P/E of 25.85 versus the industry average of 21.16.

Zacks Premium offers investment research tools including Style Scores (Value, Growth, Momentum, and VGM) designed to complement the Zacks Rank system for stock selection. RTX Corporation is highlighted as a #2 (Buy) ranked stock with a B VGM Score and B Growth Score, forecasting 14.8% year-over-year earnings growth.

RTX Corporation's Raytheon business successfully completed three tests of its upgraded Coyote Block 2C+RM counter-drone system, which features a tactical rocket motor, new seeker, and warhead to address broader drone threats. The advancement progresses from concept to testing in 15 months and demonstrates integration with existing defense networks. Growing demand for counter-drone technologies from the U.S. and allies presents growth opportunities for RTX and other defense contractors.

Howmet Aerospace (HWM) delivered robust Q2 2026 results with adjusted EBITDA surging 39% to $817 million and margins expanding 340 bps to 32.1%, driven by strong aerospace and gas turbine demand. The company raised its 2026 revenue guidance to $10.0-$10.1 billion and expects adjusted EBITDA margins of 32.1-32.2%. Peers Textron and RTX showed mixed margin performance, with RTX benefiting from aerospace deliveries while Textron faced margin pressure.

RTX Corporation is well-positioned to benefit from increased demand for naval missile defense systems, particularly through its Rolling Airframe Missile (RAM) program. The company recently secured an $11.6 million Navy contract for RAM missile spare parts extending through December 2029. RTX shares have gained 11.1% over the past year, though they trade at a premium valuation compared to industry peers.

The First Trust Indxx Aerospace & Defense ETF (MISL) offers diversified exposure to the aerospace and defense sector with a 0.6% expense ratio and $771.54 million in assets. The ETF has declined 2.46% year-to-date and 3.32% over the past year, with top holdings including Palantir Technologies, RTX Corporation, and SpaceX. MISL received a Zacks ETF Rank of 2 (Buy), though larger competitors like ITA and PPA offer lower expense ratios.

RTX closed down 1.65% on October 7, 2026, underperforming the S&P 500's 0.22% decline. The aerospace and defense stock has fallen 7.81% over the past month.

Analysts expect RTX to report Q3 earnings of $1.75 per share (2.94% YoY growth) and revenue of $23.84 billion (6.06% growth) on October 20, 2026. For the full year, consensus estimates project $7.22 EPS and $96.06 billion revenue. RTX currently holds a Zacks Rank #3 (Hold) with a Forward P/E of 25.4, trading at a premium to its industry average.

A comparison of Embraer (EMBJ) and RTX in the aerospace-defense sector reveals that Embraer presents a better value opportunity for investors. EMBJ holds a Zacks Rank #2 (Buy) with a Value grade of B, while RTX has a Zacks Rank #3 (Hold) with a Value grade of C. EMBJ features more attractive valuation metrics including a lower forward P/E ratio (24.60 vs 25.40) and a better PEG ratio (1.66 vs 2.36), suggesting stronger earnings growth prospects.

RTX Corporation has outperformed its aerospace-defense industry despite a 6% stock decline over three months, supported by major defense contracts for SM-6 and AMRAAM missiles worth $45.1 billion combined and manufacturing capacity expansions. However, the stock's premium valuation relative to industry peers may limit near-term upside, leading analysts to recommend holding for existing shareholders while prospective investors await better entry points.

RTX Corporation, an aerospace and defense company, has declined 7.8% over the past month while the S&P 500 gained 1.4%. The stock maintains a Zacks Rank #3 (Hold) rating with stable earnings estimates and consistent revenue growth forecasts. RTX has beaten consensus estimates in the last four quarters and trades at par valuation with peers, suggesting near-term performance in line with the broader market.

Zacks.com released analyst research reports on five stocks on October 6, 2026. Texas Instruments and Marvell Technology showed strong outperformance driven by demand in industrial, data center, and AI sectors.

RTX benefited from aerospace recovery and defense demand. Air T showed improvement in aviation services, while GSI Technology faced headwinds in commercialization despite potential in AI processing applications.

Zacks Research Daily features analysis of 16 major stocks and 2 micro-cap stocks. Texas Instruments benefits from broadening demand across industrial and data center markets but faces elevated debt and competition risks.

RTX outperforms aerospace-defense industry driven by commercial aerospace recovery and strong defense demand. Marvell significantly outperforms semiconductors sector on AI-driven data center strength, though customer concentration poses risks.

Air T shows strong performance in air freight with diversified aviation platform. GSI underperforms storage devices industry facing commercialization and procurement challenges. Additional coverage includes Welltower, UBS, Ross Stores, and other companies across various sectors.