Could RTX Be the Hidden Gem That Boosts Your Portfolio?
There's a lot to like about commercial aerospace and defense company RTX (NYSE: RTX) in 2025. Its commercial aerospace businesses continue to benefit from the ongoing recovery in flight departures, and both Boeing and Airbus are expecting production ramps this year. Meanwhile, on the defense side, the need to replenish equipment donated to the conflict in Ukraine and increased NATO spending is contributing to record backlogs.Does it all add up to make RTX a potential jewel in your investment portfolio?Based on the Wall Street analyst consensus and the interpolation of the facts, RTX stock looks undervalued. The table shows historical and estimated earnings before interest and taxation (EBIT) and free cash flow (FCF) for RTX. The last row shows a simple calculation for price-to-FCF (a commonly used valuation multiple). Based on a typical assumption of fair value for a mature industrial at around 20 times FCF, RTX looks like a good value.Continue reading
There's a lot to like about commercial aerospace and defense company RTX (NYSE: RTX) in 2025. Its commercial aerospace businesses continue to benefit from the ongoing recovery in flight departures, and both Boeing and Airbus are expecting production ramps this year. Meanwhile, on the defense side, the need to replenish equipment donated to the conflict in Ukraine and increased NATO spending is contributing to record backlogs.
Does it all add up to make RTX a potential jewel in your investment portfolio?
Based on the Wall Street analyst consensus and the interpolation of the facts, RTX stock looks undervalued. The table shows historical and estimated earnings before interest and taxation (EBIT) and free cash flow (FCF) for RTX. The last row shows a simple calculation for price-to-FCF (a commonly used valuation multiple). Based on a typical assumption of fair value for a mature industrial at around 20 times FCF, RTX looks like a good value.
