RTX Stock Will Keep Rewarding Patient Investors

RTX Corporation remains a buy as robust defense demand drives a 22% backlog surge to $289 billion and 18% stock appreciation since late April. Q2 results exceeded expectations: 14% sales growth (16% organic), 21% adjusted EPS growth, and free cash flow improvement to $2.88 billion despite capacity constraints. Raytheon segment leads with 18% sales growth and major contract wins, while Pratt & Whitney and Collins Aerospace show operational progress and innovation. Despite a 38.8% sector premium forward P/E, strong geopolitical tailwinds and a rising backlog justify the valuation for patient, long-term investors.

Earlier this year, I initiated coverage on RTX Corporation ( RTX ). In that analysis, it was shown that defense demand was strong and that their backlog was growing. Furthermore, the company's capacity expansion plans indicated This article was written by Bay Area Ideas 5.64K Followers Follow I'm a full-time investor with a strong focus on the tech sector. I graduated with a Bachelor of Commerce Degree with Distinction, major in Finance. I'm also a proud lifetime member of the Beta Gamma Sigma International Business Honor Society. My core values are: Excellence, Integrity, Transparency, & Respect. I always, to the best of my ability, hold true to these values which I believe are key for long-term success. I would like to invite all of my readers to leave their constructive criticism and feedback in the comments section so that I can further enhance the quality of my work moving forward. Thank you and God Bless America! Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that do include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.