RTX Corporation

RTX Corporation is the defense/aerospace conglomerate (Raytheon, Pratt & Whitney, Collins Aerospace) — the leading US missile-defense supplier alongside Lockheed. The setup is a compounder capitalizing on a specific spending cycle.

• The recent contract awards are real and large: a $22.9B, 7-year Tomahawk contract with the US Navy (ramping to 1,000+ missiles per year) plus a $603M Air Force B-52 radar modernization, plus a $241M Navy contract, plus completed altitude testing of the F-35 EPACS system — the backlog trajectory is being fed by named, dollar-attached contracts.
• The core P&L supports the multiple: Q2 revenue grew 8.7% YoY to $22B at a 21% gross margin, EPS beat at $1.89 vs $1.66 consensus (a ~14% beat), and the sell side models EPS climbing from ~$7.06 this year to ~$7.72 in 2027 and ~$8.60 in 2028 — a mid-teens EPS ramp on a $95B revenue base.
• The insider signal is a mild negative: officer Ramsaran Maharajh sold ~$3M on August 18 after M-Exempt exercises — routine post-exercise trim rather than conviction leaving, and the only insider print in the sample; the more telling absence is any open-market buy at the 52-week highs.

The setup is a real-business defense compounder printing 8-10% revenue growth into a $500B missile/air-defense funding request — the October 20 Q3 print is the referee, and the market needs continued double-digit backlog growth plus reiterated FY26 EPS guide toward the $7.06 consensus. A clean beat plus a fresh named international contract extends the accelerating trajectory; a supply-chain disruption or a Pratt & Whitney warranty charge would cool the tape from the 52-week high.