Should You Buy RTX Corp Stock At $85?

RTX Corp stock (NYSE: RTX), formerly known as Raytheon Technologies, has seen a 13% fall in a month, underperforming the broader S&P500 index, up 2%. Although the company reported an upbeat Q2, its recall of over 1,000 engines and associated costs has weighed on its stock. In the longer term, RTX stock is up 23% from levels seen in late 2020, faring marginally better than the S&P 500 index, up around 20%.

This 23% growth for RTX stock since late 2020 can primarily be attributed to 1. RTX Corp’s revenue growth of 25% to $71 billion over the last twelve months, compared to $57 billion in 2020, 2. the company’s P/S ratio rising a modest 0.5% to 1.7x trailing revenues, partly offset by 3. a 1.7% rise in its total shares outstanding to 1.5 billion. This has meant that the company’s revenue per share metric has risen 23% to $48.49 now, compared to $39.54 in 2020. Our dashboard on Why RTX Corp Stock Moved has more details.