RTX - RTX Corporation: Strong Execution Organic Growth But Shares Close To Fair Value

2024-07-02 09:45:11 ET

Summary

• RTX Corporation has outperformed the Industrial sector in the past nine months, with shares up over 40% despite a recent pullback.
• RTX posted solid bottom-line beats in 1H24 with strong organic growth, reaffirming FY 2024 sales guidance and free cash flow expectations.
• Analysts project RTX to see earnings growth and a higher dividend yield, while my fundamental intrinsic value target has increased from last year.
• I highlight key price levels to monitor ahead of earnings due out later this month.

RTX Corporation (RTX) has stood out in the last nine months, while the Industrials sector has surged 21% since the end of Q3 2023. Relative strength has since turned south in the industrials sector, with the Industrial Select Sector SPDR ETF (XLI) now near multi-year lows in performance versus the S&P 500 (SPY). But with RTX shares up more than 40% in the past nine months even after a recent pullback, investors in this company have been rewarded. ...

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