RTX (RTX) is back in focus after fresh missile related agreements and production plans, including new GEM-T Patriot, AMRAAM, Tomahawk, SM-6 and Standard Missile-3 hardware commitments, helped support a measured move in the stock.

These missile related contracts and production agreements sit against a share price that has climbed sharply in recent months, with a 30 day share price return of 13.82% and a 1 year total shareholder return of 46.85%. This points to momentum that has been building over both shorter and longer periods as RTX secures new awards and ramps capacity.

If RTX's defense focus has you thinking about where else capital is flowing in critical infrastructure, it could be worth scanning 38 power grid technology and infrastructure stocks

After a near 47% total return over the past year and RTX now trading close to some intrinsic value and price target estimates, the question is simple: Is the meaningful upside still ahead, or has the stock already done most of the work?

Most Popular Narrative: 4% Undervalued

RTX last closed at $222.97, which sits below the most widely followed fair value estimate of $232.27. That gap reflects a narrative built around contract visibility, commercial aerospace demand, and improving profitability assumptions.

Robust and growing backlog, highlighted by a 1.86 quarter book-to-bill ratio, $236 billion backlog (up 15% year-over-year), and major new international contracts (e.g., EU, MENA, Asia-Pacific) indicate RTX is well-positioned to benefit from sustained increases in global defense spending and heightened geopolitical tensions, setting up strong visibility for future revenue growth.

Want to understand why that backlog matters so much for RTX? The narrative leans on steady top line expansion, firmer margins, and a rich future earnings multiple. Curious which revenue and profit assumptions sit behind that fair value gap.

Result: Fair Value of $232.27 (UNDERVALUED)

However, RTX holders still need to watch for tariff cost swings and any fresh jet engine reliability or aftermarket overruns that could quickly challenge this upbeat narrative.

Another View: RTX Through The P/E Lens

While RTX screens as about 3% below one fair value estimate, its 38.8x P/E sits above a fair ratio of 36.1x. The stock also trades slightly below the US Aerospace & Defense average of 39.9x and well below a 53.6x peer average. Is this a modest valuation cushion or a sign that expectations are already demanding?

To put those P/E gaps in context and see what the numbers imply for valuation risk and opportunity, take a closer look at the See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

If this RTX story appears to balance potential opportunities and risks, consider acting promptly, reviewing the numbers for yourself, and weighing the 3 key rewards and 3 important warning signs.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.