Everyone around the Zuidas knows those companies that always make headlines when global tensions rise. Raytheon Technologies, now RTX, is one of them. But why are so many investors choosing this defense and aerospace stock right now? Let’s find out if RTX could be a good fit for you too.
What makes RTX such a strong player?
Imagine running a shop on Oxford Street, where only the wealthiest customers come in. That’s how it works for RTX. They sell jet engines, radars, and even hypersonic weapons to governments like the US, NATO, and countries all over the world. On top of that, they supply parts and lock in long-term maintenance contracts—so money keeps coming in year after year.
Ever wonder why not everyone can just step into this market? RTX has a big lead thanks to smart patents and massive scale. With their unique technology, they’re seen as pioneers in next-gen radar and aerospace.
Why is the market growing extra fast right now?
Defence budgets are rising worldwide. Even in quiet neighbourhoods like Kensington, people are talking about higher NATO spending. Old aircraft need replacing, and aviation is bouncing back quickly from the COVID slump. As a result, RTX’s order book just keeps growing.
How financially healthy is the company?
In the first quarter of 2025, revenue rose 7% to $19.3 billion. Net profit reached $1.42 billion. With an order book of $195 billion, the future looks bright. RTX keeps debt low and holds enough cash to invest, pay dividends, and buy back shares.
Can you picture it? Every quarter, steady cash flow—even when the stock market feels a bit shaky.
Strong management and focus on shareholders
RTX’s management is experienced and known for its discipline. They keep raising the dividend and buy back shares when the price is low. The company always chooses innovation and growth beyond the US, so RTX will likely remain a leader in ten years’ time.
Is the stock expensive?
RTX trades at a price/earnings ratio of 19. That’s lower than most sector peers. The dividend yield is attractive too: 2.3%, which is higher than the S&P 500 average. With a price of around $97 at the end of April 2025, experts estimate fair value at $110-115. So, there’s still plenty of upside potential.
What risks should you keep in mind?
Of course, there are risks. The company depends on major government clients, especially the US. Supply issues with chips or parts can pop up, and government policy can change fast. Still, RTX has stayed surprisingly stable, even during uncertainty in Washington or Brussels.
How does RTX fit into your investment strategy?
Are you looking for steady income and less stress from market swings? Or do you want growth from aerospace and cybersecurity? RTX fits both strategies. It’s suitable as a core holding in a broad portfolio—think of it alongside Unilever or Shell.
Buy advice: is now the time to step in?
Given the attractive valuation, steady cash flow, and full order book, RTX is a buying opportunity. Follow the quarterly results, keep an eye on geopolitical risks, and pay extra attention to US elections and NATO budgets.
Are you ready to take the next step with a stock that offers both security and growth?
Tell me: what’s still holding you back from buying RTX right now?
