RTX Corporation (NYSE:RTX), previously Raytheon Technologies, and Coca-Cola (NYSE:KO) are among the most-discussed stocks on the social media platform Reddit. While RTX and KO stocks have significantly gained attention and are buzzing on Reddit, Wall Street analysts are cautiously optimistic about RTX. However, analysts maintain a Strong Buy outlook on Coca-Cola shares.
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Considering this backdrop, let’s delve into these trending Reddit stocks.
Is RTX Stock a Buy, Sell, or Hold?
Shares of the aerospace and defense company RTX came under pressure after the company disclosed plans to conduct inspections on approximately 600 to 700 engines over the next three years due to the powder metal manufacturing issue found in Pratt & Whitney’s GTF engines. RTX is expanding its maintenance capacity, ramping up part production, and implementing various measures to mitigate the impact. However, it is expected to adversely affect the company’s financial performance.
The company estimates a negative impact of $3-$3.5 billion on its pre-tax operating profit over the next several years. This includes a $3 billion pre-tax charge in Q3. Expecting a cash impact of approximately $1.5 billion during 2025, the company lowered its free cash flow outlook to $7.5 billion from $9 billion.
Nonetheless, RTX reiterated its 2023 financial outlook and 2020 to 2025 sales and margin growth targets.
Given this backdrop, analysts are cautiously optimistic about RTX stock in the near term. With seven Buy, 10 Hold, and two Sell recommendations given in the past three months, RTX stock has a Moderate Buy consensus rating. The average RTX stock price target of $88.29 implies 27.26% upside potential.
Is Coca-Cola Stock Expected to Rise?
Wall Street is optimistic about Coca-Cola’s prospects and expects its stock to rise. The beverage giant delivered stronger-than-expected Q2 earnings, reflecting its ability to increase prices and maintain affordability in a challenging macro environment.
Further, the company revised its organic sales and EPS outlook upward, implying that the momentum in its business will likely be sustained. Additionally, the company’s ability to return a significant amount of cash to its shareholders through higher dividend payouts acts as a catalyst for the stock.
Coca-Cola stock has a Strong Buy consensus rating based on nine Buy and two Hold recommendations given in the past three months. Meanwhile, the average KO stock price target of $70.91 implies 35.38% upside potential from current levels.
The Takeaway
RTX and Coca-Cola stocks are trending on Reddit. However, near-term headwinds are keeping analysts cautiously optimistic about RTX. On the other hand, Coca-Cola is executing well in a tough macro environment and has a Strong Buy consensus rating. Also, KO stock has higher upside potential (based on analysts’ price targets), likely making it a more compelling bet than RTX in the short term.
