RTX Corp. (RTX (RTX)) got a nice boost in Monday's premarket after British Airways decided to power its next batch of Airbus A320neo jets with Pratt & Whitney engines. The deal covers 33 firm aircraft, with options for 30 more, and includes a 12-year maintenance contract. Deliveries start in 2027.

Pratt & Whitney is an RTX business, and its geared turbofan (GTF) engines are the star here. RTX says the GTF cuts fuel consumption by up to 20% and reduces noise footprint by as much as 75% compared to older engines. That's a big selling point for airlines looking to save on fuel and meet stricter environmental rules.

The GTF is already pretty popular. More than 2,800 GTF-powered aircraft are flying with over 90 customers worldwide, and Pratt & Whitney's backlog sits at over 8,000 engines. Later this year, RTX expects its next-generation GTF Advantage engine to enter service, which the company says will offer up to twice the time on wing, better fuel efficiency, and more range.

So the business side looks good. But what about the stock? RTX has gained 27.7% over the past 12 months and is trading above its 20-day simple moving average of $192.17, which signals positive short-term momentum. However, the technical picture isn't all rosy. The 50-day moving average is still below the 200-day moving average after a death cross in June, suggesting longer-term trend pressure. The moving average convergence/divergence indicator is also below its signal line, pointing to weakening momentum. The stock faces resistance near its 52-week high of $214.50, while initial support sits around the 50-day moving average at $183.96.

Investors will get a clearer picture later this week. RTX is scheduled to report second-quarter results on July 23. Analysts expect earnings of $1.66 per share, up from $1.56 a year ago, on revenue of $22.87 billion, compared to $21.58 billion last year. The stock trades at 36.3 times earnings, which is a premium valuation, so the market is pricing in some growth.

Wall Street's consensus rating is Buy, with an average price target of $215. Recent analyst moves include Jefferies upgrading to Buy with a $220 target on June 4, Morgan Stanley maintaining Overweight but lowering its target to $220 on April 22, and UBS maintaining Neutral with a reduced $199 target on April 22.

For ETF investors, RTX is a top holding in several aerospace and defense funds. It accounts for 7.06% of the Invesco Aerospace & Defense ETF (PPA (PPA)), 4.68% of the Amplify CWP Enhanced Dividend Income ETF (DIVO (DIVO)), and 8.03% of the Global X Defense Tech ETF (SHLD (SHLD)). Because RTX is a meaningful weight in these funds, strong ETF inflows or outflows can influence demand for the stock.

RTX shares were up 1.17% at $195.75 in premarket trading on Monday.