RTX - RTX Corporation: Cyclical Profit Upside

2024-06-26 06:13:00 ET

Summary

• RTX Corporation is seeing double digit revenue growth, especially in engine demand in the Pratt & Whitney segment.
• Strong aviation industry fundamentals support a continually bullish outlook for RTX Corporation.
• Operating margin gains and cyclical tailwinds from the aviation industry indicate the potential for an expansion in RTX's earnings multiplier.

RTX Corporation ( RTX ) is a well-run industrial company that benefits from strength in demand from the aviation industry. RTX Corporation saw double-digit top line growth in the first fiscal quarter, chiefly due to strength in engine demand in the Pratt & Whitney segment, a trend that I believe has staying power as the airline industry is shooting for a record year in terms of air travel passengers. Despite a positive 21% year-to-date price return for RTX Corporation’s shares, I believe the outlook is still very favorable for the company and with a P/E ratio of 17X, I consider RTX to have an attractive valuation for growth investors!...

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