Raytheon's $22.9B missile deal overshadowed by concerns over high stock valuation amid Fed rate hikes.

Raytheon Technologies (RTX) secured a $22.9 billion Tomahawk missile contract, one of the largest in Pentagon history, boosting its defense backlog to $289 billion. Despite strong Q2 earnings and raised guidance, market analyst Jim Cramer cautions that RTX's stock remains expensive with a high price-to-earnings ratio around 27-34x, which is likely to decline due to the Federal Reserve's ongoing interest rate hikes. This valuation pressure has contributed to a recent 10% drop in RTX's stock price over the past month. While the defense business fundamentals are strong, the macroeconomic environment suggests further multiple compression before investors return.

Raytheon Technologies (RTX) trades at USD 196.47 on Pluang as of Sep 17, 2026 20:51 WIB, showing a slight 0.18% decline in the last day. The stock's market cap stands at $265.28 billion, below its 52-week high of $225.49. Pluang investors currently lean more towards buying, with 61% of order activity favoring purchases over sales.