Shares of RTX Corp. (RTX) are getting a nice boost on Tuesday, climbing about 2.4%. The move comes after some good news from the defense side of the business.
Pratt & Whitney, which is a unit of RTX, said it secured a $3.8 billion contract modification. This is for lots 18 and 19 of the F135 engine program. The deal brings the total contract value up to $6.6 billion. For those keeping score at home, the F135 is the engine that powers the F-35 fighter jet. The contract covers engines, spare parts, and support services.
The company says it's ramping up production to meet rising global demand, backed by more than $1 billion in recent manufacturing investments. Output for the F135 has already increased by 20%, with over 1,400 engines delivered so far to support 20 allied nations.
Checking the Charts
So, the stock is up on the news, but where does it sit technically? Let's take a look.
Right now, the stock is trading about 5.1% below its 20-day simple moving average. That suggests some short-term weakness. On the flip side, it's 0.5% above its 100-day moving average, which points to longer-term strength. Over the past 12 months, the story has been pretty good—shares are up 44.15% and are trading closer to their 52-week highs than their lows.
The Relative Strength Index (RSI) is sitting at 31.81, which is considered neutral territory. That means the stock isn't looking overbought or oversold at the moment. However, the MACD indicator is at -2.8955, which is below its signal line of -0.8743. That's typically read as a bearish signal, suggesting some downward pressure.
Putting it together, you have a neutral RSI and a bearish MACD. That gives you mixed momentum signals. There's strength in the longer-term trend, but traders might want to be a bit cautious in the near term.
- Key Resistance: $206.50
- Key Support: $182.00
What Are the Analysts Saying?
RTX is scheduled to provide its next financial update on April 21, 2026. The current estimates are looking for growth.
- EPS Estimate: $1.51 (up from $1.47)
- Revenue Estimate: $21.41 billion (up from $20.31 billion)
- Valuation: The stock trades at a P/E of 37.7x, which indicates a premium valuation.
The analyst consensus on the stock is a Buy rating, with an average price target of $186.43. We've seen some recent moves from big firms:
- Citigroup: Buy rating, raised target to $238.00 (Feb. 5)
- JP Morgan: Overweight rating, raised target to $215.00 (Jan. 28)
- RBC Capital: Outperform rating, raised target to $230.00 (Jan. 28)
ETF Exposure: Why Fund Flows Matter
If you're wondering how big, passive money might be affecting RTX, look at its weight in some key exchange-traded funds (ETFs). Because of its size, RTX is a major holding in several funds focused on industrials and defense.
- State Street Industrial Select Sector SPDR ETF (XLI): 4.90% Weight
- Global X Defense Tech ETF (SHLD): 7.86% Weight
- Invesco Aerospace & Defense ETF (PPA): 8.51% Weight
Here's why this matters: because RTX carries such a heavy weight in these funds, any significant money flowing into or out of these ETFs will likely force automatic buying or selling of the stock by the fund managers. It's a mechanical relationship that can add extra volatility or momentum.
Price Action
Putting a final number on it, RTX shares were up 2.44% at $191.71 at the time of publication on Tuesday, according to market data.
