RTX (RTX) Could Be 14% Undervalued As Raised Guidance Lifts The Valuation Case

What happened: RTX (RTX) reported higher third quarter 2026 revenue and earnings and raised its outlook, with management citing record backlogs and recovering commercial aerospace demand. Key numbers: RTX closed at $195.84 versus a narrative fair value of about $228.83. Why it matters: The article frames the gap between the share price and fair value as a valuation question around backlog conversion, capital spend and long term cash generation, while noting reliance on government spending and large 2026 capex plans as risks to the undervaluation case. Market: +2.2% today ($200.09), +7.7% YTD, 1.0x vol — as of 19:03 UTC

RTX (RTX) reported higher third quarter 2026 revenue and earnings and raised its outlook, with management citing record backlogs and recovering commercial aerospace demand.

The article frames the gap between the share price and fair value as a valuation question around backlog conversion, capital spend and long term cash generation, while noting reliance on government spending and large 2026 capex plans as risks to the undervaluation case. Market: +2.2% today ($200.09), +7.7% YTD, 1.0x vol — as of 19:03 UTC