Is RTX a good stock to buy? We came across a bullish thesis on RTX Corporation on R. Dennis’s Substack by OppCost. In this article, we will summarize the bulls’ thesis on RTX. RTX Corporation’s share was trading at $187.33 as of June 29th. RTX’s trailing and forward P/E were 35.27 and 27.03 respectively according to Yahoo Finance.
RTX Corporation, an aerospace and defense company, provides systems and services for commercial, military, and government customers worldwide. RTX is positioned as a post-earnings volatility dislocation story following a large put sale of 4,570 contracts of the August 21, 2026 $155-strike puts, generating $1.99 million in premium and implying $70.8 million in potential assignment capital, as investors express confidence in downside protection after a sharp 11.28% weekly selloff.
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The company delivered a clean beat-and-raise quarter, with revenue of $22.08 billion, adjusted EPS of $1.78, and free cash flow of $1.3 billion, alongside record backlog of $271 billion and raised 2026 guidance, yet the stock declined on tariff concerns and defense sector de-rating tied to easing geopolitical tensions. Despite near-term pressure, the investment case is anchored in durable fundamentals, three-year revenue backlog, expanding commercial aerospace cycles driven by Pratt & Whitney and Collins, and a defense segment benefiting from rising global military budgets and NATO rearmament trends.
The $155 strike reflects a forward multiple near 22.7x earnings, indicating valuation compression relative to current trading levels while embedding a margin of safety supported by recurring cash flows and a 50% payout ratio dividend history dating back to 1936. Analyst targets ranging from $207 to $240 suggest upside potential of approximately 20% to 35% from current levels near $174, reinforcing the bullish skew.
Elevated implied volatility post-earnings enhances the attractiveness of premium collection strategies, as option sellers benefit from volatility normalization. RTX is viewed as a high-quality aerospace and defense compounder where short-term sentiment dislocation contrasts with long-term earnings visibility, strong backlog support, and structural defense demand tailwinds.
Previously, we covered a bullish thesis on RTX Corporation (RTX) by Stock Picker’s Corner in January 2025, which highlighted defense tailwinds, X-Band radar, and hypersonic and drone defense capabilities. RTX’s stock price has appreciated by approximately 61.67% since our coverage. OppCost shares a similar view but emphasizes post-earnings valuation dislocation, strong backlog, and options-driven downside support.
