RTX overcomes engine setback

Article Excerpt

The shares of aerospace equipment maker RTX are up 65% since dropping to $69 in October 2023 on the news of a defective jet engine recall. The share price jump is largely because the company significantly expanded its capacity to handle these repairs, which has helped it speed up that work. We feel the stock still has plenty of room to move higher in 2025, as the conflicts in Ukraine and the Middle East spur demand for its military equipment, particularly the Patriot surface-to-air missile system. President-elect Donald Trump also promises to increase U.S. defense spending. RTX CORP. $114 is a buy. The company (New York symbol RTX; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.3 billion; Market cap: $148.2 billion; Price-to-sales ratio: 2.0; Dividend yield: 2.2%; TSINetwork Rating: Above Average; www.rtx.com) took its current form in 2020 through the merger of United Technologies and Raytheon. As part of the merger, the new firm also spun off its Otis (elevator) and Carrier (heating…