Section 1: Company Overview and Fundamentals

1.1 Company Overview:

RTX Corporation is an aerospace and defense company. The Company is advancing aviation, engineering integrated defense systems, and developing technology solutions. The Company operates through three segments: Collins Aerospace, Pratt & Whitney, and Raytheon.

Kalkine’s American Tech Report covers the Company Overview, Key positives & negatives, Investment summary, Key investment metrics, Top 10 shareholding, Business updates and insights into company recent financial results, Key Risks & Outlook, Price performance and technical summary, Target Price, and Recommendation on the stock.

  Stock Performance:

• RTX has been corrected by 11.96% in the past month, furthermore with a 26.29% of correction in the past six months.

• The stock is leaning towards its lower band of its 52-week range of USD 104.91 and 52-week low price of USD 68.56. Post the announcement of Q2FY23 results the stock has given a return of around 23.94%, with currently price inside a support zone of USD 65-USD 70.
• The price is currently trading below its long-term (200-day) SMA and its short-term (50-day) SMA, with the current RSI recovering from oversold zone with value of around 43.03.

 

1.2 The Key Positives, Negatives, and Investment summary

1.3 Key Metrics:

The graph below demonstrates that RTX is more profitable than its industry rivals at the given levels of operation.

1.4 Top 10 shareholders:

The top 10 shareholders together form ~40.19% of the total shareholding, signifying concentrated shareholding. The Vanguard Group, Inc., and State Street Global Advisors (US)are the biggest shareholders, holding the maximum stake in the company at ~8.57% and ~8.54%, respectively.

Section 2: Business Updates and Corporate Business Highlights

2.1 Recent Updates:

The below picture gives an overview of the recent updates:

2.2 Insights of Q2FY23:

Section 3: Key Risks and Outlook

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

  Stock Performance:

• RTX has been corrected by 20.01% in the past month, furthermore with a 42.94% of correction in the past six months.

• The stock is leaning towards its lower band of its 52-week range of USD 134.90 and 52-week low price of USD 29.19. Post the announcement of Q3FY22 results the stock has given a return of around 40.04%, with currently price inside a support zone of USD 25-USD 27.
• The price is currently trading below its long-term (200-day) SMA and its short-term (50-day) SMA, with the current oversold RSI of around 19.82.

4.2 Fundamental Valuation

Valuation Methodology: Price/Earnings per share Multiple Based Relative Valuation

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is October 10, 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: The report publishing date is as per the Pacific Time Zone.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

 Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

 Stop-loss: It is a level to protect against further losses in case of unfavorable movement in the stock prices.

---

Disclaimer

References to ‘Kalkine’, ‘we’, ‘our’ and ‘us’ refer to Kalkine Limited.

This website is a service of Kalkine Limited. Kalkine Limited is a private limited company, incorporated in England and Wales with registration number 07903332. Kalkine Limited is authorised and regulated by the Financial Conduct Authority under reference number 579414.

The article has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. No advice or information, whether oral or written, obtained by you from Kalkine or through or from the service shall create any warranty not expressly stated. Kalkine does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation.

Kalkine does not offer financial advice based upon your personal financial situation or goals, and we shall NOT be held liable for any investment or trading losses you may incur by using the opinions expressed in our publications, market updates, news alerts and corporate profiles. Kalkine does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation. Kalkine’s non-personalised advice does not in any way endorse or recommend individuals, investment products or services for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a professional authorised financial planner and adviser. You should be aware that the value of any investment and the income from it can go down as well as up and you may not get back the amount invested.

Kalkine Media Limited, an affiliate of Kalkine Limited, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.