RTX Corporation

Methodology

RTX's diversified aerospace and defense portfolio creates earnings visibility from commercial aftermarket recovery, defense backlog, and long-cycle programs. Pratt engine challenges and integration from Raytheon merger add complexity. Focus on normalized earnings across aerospace cycles and segment contributions from Collins, Pratt, and Raytheon rather than consolidated figures.

Methodology

RTX typically trades at moderate PEG ratios reflecting diversified exposure to commercial aerospace recovery and defense spending. The metric should account for Pratt engine issues, commercial aftermarket normalization, and defense backlog conversion. Compare to diversified aerospace peers while considering the unique combination of commercial and defense operations.

Methodology

RTX offers a meaningful dividend with management committed to capital returns despite elevated R&D spending on engine programs. The dividend adds value supplementing commercial aftermarket recovery potential. For diversified aerospace companies, free cash flow generation and capital allocation matter as much as earnings metrics.