Should I Buy RTX (RTX)? Finance YouTuber Analysis

The analyst recommends RTX Corporation, a primary contractor for missile interceptors, anticipating increased demand due to ongoing geopolitical tensions. He argues that regional allies' interceptor stockpiles are dangerously low and will require significant resupply, benefiting RTX even if the conflict de-escalates.

“My favorite here, RTX Corporation, ticker RTX, the old Rathon here. This is the prime the primary contractor for missile interceptors. Okay. Missiles being able to shoot down other missiles in the air.”

The YouTuber suggests RTX Corporation could have upside heading into earnings. Despite a 50% run, he believes management might upgrade revenue forecasts due to increased defense spending and high demand for its missile interceptor technology, which could support investor sentiment.

“RTX Corporation, ticker RTX, reports earnings on Tuesday with the stock already up 50% over the last year as the old Rathon benefits with the rested defense stocks on the Iran war. There could still be room for upside here though as an upgrade to expectations.”

The YouTuber recommends RTX Corporation, highlighting its manufacturing of the Patriot missile system. He anticipates a significant increase in sales growth estimates as the company receives orders to replenish interceptor storage depleted by the ongoing US-Iran conflict.

“I think again that gets a big upgrade. I think you see these numbers, these growth estimates boom here on Loheed Martin as well as RTX as they see those orders come in to replenish those that storage of interceptor technology.”

The YouTuber identifies RTX (formerly Raytheon) as a top pick in the defense sector due to its critical missile, interceptor, and sensor technology, which will be essential for projects like Trump's 'Golden Dome' and general anti-missile warfare.

“Here we're going to look at stocks like RTX, the old Rathon, probably my favorite stock in this theme. That's they they have the missile technology, the interceptor, and the sensor technology that is going to be critical in not only Trump's golden dome project that he's putting together, but also just traditional anti-missile warfare that we're coming to.”

RTX Corporation (formerly Raytheon) is highlighted as a strong contender in the defense sector, particularly for its anti-surface-to-air missile portfolio and drone technology, which align with the future of warfare. With Trump proposing a significant increase in the defense budget, RTX is expected to benefit, but the analyst suggests waiting for a pullback after its recent surge.

“I would be buying shares of RTX Corporation maybe when they come down a little bit after this big spike over the last day on this news, but definitely looking at RTX Corporation, ticker RCX.”

The YouTuber recommends RTX (formerly Raytheon) due to its critical role in defense, particularly with its Patriot missile defense system. He argues that a US stake would secure supply chains and ensure sustained production of essential missiles and air defense systems, aligning with the direction of modern warfare.

“I think shares of RTX ticker RTX that's the old Rathon fits here as well with its Patriot missile defense system and critical surfaceto-air missile capabilities considering the direction warfare is going here.”

The YouTuber suggests RTX Corporation as a stable long-term investment due to its leadership in missile defense systems, benefiting from increasing global defense spending and missile technology use. The company reported strong growth and a large order backlog, offering a stable return despite not being a high-growth stock.

“Against the safety and upside, I don't want you to think that RTX is the kind of stock that's going to make you rich. Even in an upgrade to the 6% forecasted sales growth, we're still only looking at singledigit revenue growth this year and next.”

The YouTuber notes that defense was one of the few sectors to see an increase in spending in the new budget bill. This should benefit defense contractors like RTX Corporation.

“Defense was one of the few areas to see an increase in spending, which should make contractors like RTX Corporation, ticker RTX, and Loheed Martin, LMT, happy.”

The YouTuber identifies RTX as a primary beneficiary of a US war with Iran, given Iran's missile capabilities. He states that any US involvement would immediately increase demand for missile defense systems, an area where RTX specializes with products like the Patriot and THAAD systems.

“Within these RTX Corporation, ticker RTX, the old RAON is likely the most benefit from a US war. That's because Iran's strength is in its ballistics and cruise missile stockpile. So any US involvement will immediately trigger demand for missile defense systems of which RTX specializes.”

The YouTuber recommends buying RTX due to its attractive valuation at 19 times P/E, a 37% discount to its five-year average, despite a recent recall of Pratt and Whitney engines. He highlights its sustainable 3.3% dividend yield with a 47% payout ratio and its strong position in aerospace and defense, with double-digit growth in most segments.

“here investors have the opportunity to grab a reliable dividend stock beaten down by recent news that will continue to cash flow for your portfolio”

The YouTuber recommends Raytheon Technologies, citing increased government spending on defense due to geopolitical tensions. Raytheon is a leading contractor with long-term contracts, ensuring stable cash flows and a 2.4% dividend yield. Analysts have an average target of $106, representing over 15% upside.

“with geopolitical tensions flaring up with china over taiwan and the ongoing conflict in ukraine is there any doubt that defense is gonna see strong government spending for years to come”

The YouTuber suggests RTX (formerly Raytheon) as a more conservative defense blue-chip company. He believes it is on the 'right side of the money rotation' due to increased global defense spending and NATO commitments, despite its more modest gains compared to other picks.

“A little bit more conservative would be RTX. Used to be called Rathon. Massive company. Defense blue chip company. basically only up about 69%.”

The YouTuber believes RTX is an undervalued opportunity due to its trifecta of share buybacks, earnings growth, and potential for market multiple expansion. He argues the market is underpricing the merger synergies between Raytheon and United Technologies, leading to a conservative forecast that suggests an 11% annualized return over 10 years. The company also benefits from a sticky industry with high barriers to entry and a strong backlog.

“I think RTX is a very reasonable reasonably priced company and I can teach you how to I find those or isolate those companies.”