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  • Presentations

How to Start and Give a Great Thesis Defense Presentation

Sarah Joy

To complete a graduate degree, you'll likely need to create a thesis defense presentation. You must complete a thesis to finish many graduate degree programs. 

It's important to have an impressive thesis defense presentation.

A thesis is a paper where you explore a topic in depth that's related to what you’ve studied. After completing your thesis paper, you will be asked to defend it through a presentation.

You give this thesis defense in a meeting with a panel of two or more professors in your program. The panel could include other professionals related to your field.

In your thesis defense presentation, you will be asked questions about your topic. The purpose of the questions is to get you to think deeply about your work, so the questions could be open-ended.

To create a thesis defense presentation, you need to know how to make a thesis presentation and how to start your thesis defense. Keep reading to find out more about thesis defense presentations.

How to Structure Your PPT for Thesis Defense

It's just as important to start your presentation strong as it is to end strong.

Thesis defense presentations can vary in length. They can be 20 minutes long or two hours long. It depends on how much time is allowed for your presentation and questions.

Talk to your professor to find out how much time is set aside for your presentation. Your thesis defense presentation will be unique to your thesis. But a good presentation includes the following structure:

  • Title . You need a title just as your research paper needed a title. The title slide will include the information that you’d include on your paper title. This information can include the title, your name, your school, and course name.
  • Introduction . Just like most presentations, your thesis defense presentation should include an introduction slide. This slide should have the topic of your thesis and the question that your presentation answers. It should also include any objections to your research and the answer you’ll be defending in your thesis presentation.
  • Literature Review . Next, create two or more slides with a review of the literature used in your research. It doesn’t need to be a complete bibliography. Although you do need to cite your sources, these slides should include your most relevant sources.
  • Methodology . These slides in your thesis presentation are where you describe what method you used and an explanation of why you chose that method. If you've got some original research, include the details of that research and how you analyzed the data that you got from that research.
  • Results . Some of the most important slides of your PPT for thesis defense contain the results of your research. This should include a description of the data you collected by researching and the results of your data analysis. You also should highlight what your most noteworthy finding was.
  • Discussion . These slides of your PPT for thesis defense need to include your research results. Also, show how the results support your argument and how it relates to your original question.
  • Conclusion . The conclusion thesis presentation slides should restate your original research questions, show the results of your research, and suggest future research and any final recommendations.
  • Ending Slide . The ending slides of your thesis defense presentation are where you add an interesting fact, quote, gif, or hypothetical question. The point is to get your audience to continue to think about your topic while also grabbing their attention. You want your presentation to be memorable.

How to Make a Thesis Presentation

After you’ve seen what the structure of a thesis defense presentation is, there are some more tips that you can follow. Here are tips on how to create a thesis defense presentation:

1. Define Your Concept

When you start with a template you're starting with a good base.

After choosing which template to use, the next step is to choose the concept of your thesis defense presentation. Your concept should be relevant to your thesis. To have a fully rounded concept, try to make your presentation templates design relevant to your thesis topic.

Before working on your defense, think about the message you want to convey. This will help you choose elements such as font images and a theme that'll be cohesive.

2. Know Your Audience

Most people give their thesis defense presentation to an academic panel. This panel will look to see if you've developed a thorough understanding of your topic and thesis. They’ll also be looking to see if you've got a solid foundation for your argument.

This is why your presentation is important. You don’t want a sloppy presentation because it can give the impression of laziness and that you don’t care about your presentation. So, choose all aspects of your presentation carefully.

3. Keep Your Slides Focused   

Focused slides are less overwhelming for the audience.

Part of giving a good thesis presentation is to have focused slides. This means that you don’t want to have too much information on a slide. It’s best to follow the rule of one point per slide. If you've got too much on a single slide, it can be hard for the audience to follow you.

4. Structure Your Presentation

After you’ve chosen your concept, it's time to structure the content of your thesis. When structuring your information, you want to show that you understand the subject matter and that you're organized.

5. Less Is More

Less elements on a slide makes it easier for an audience to focus on your point.

Each slide should have enough information that you can make your point. It’s important that your audience listens more than they read. By speaking, you show your audience that you know the topic you’re presenting on. So, when creating your slides, remember that less is more.

6. Consider Your Typography

After choosing your thesis presentation subject, consider what typography to use. Your typography should create an impact without distracting from your topic.

When considering your typography, consider your text's colors. Your text's colors should contrast with your slide's background. If the text doesn’t contrast well, it can distract the audience, causing them not to pay attention as you speak.

7. Stick to Important Data

Don't overwhelm the audience with a large amount of data. Stick to important data.

Include data that'll strengthen your argument. Your data should also show that you’ve researched your thesis. If you can, add visuals that are relevant to your data. Visuals stimulate your brain and can increase how fast you process information. So, including relevant visuals can make your data easier to process and remember.

8. Consistency Is Key

When thinking about how to make a thesis presentation, think about consistency. For an impressive presentation, your presentation should flow well. It’s easier to have consistency when using a template because it’s already designed by a professional.

Check your finished presentation for consistency. This means making sure all your titles on slides are the same font and font size. Also, make sure that your body text is consistent throughout.

9. Explain Your Thesis

The most important part of your thesis defense presentation is explaining your thesis.

The next step in how to make a thesis presentation is to explain your thesis in great detail. The first part of this is your methodology slide . This is where you explain what method you used for your research, why you chose the topic, and how you conducted your research.

For this part of your thesis, chart and tables in your presentation are helpful in explaining data. In this section, keep your text minimal to let the chart, graphs, and data stand out. 

Next, tell the audience what the data means. Infographics are a great option to use in this section. Infographics and icons can quickly and simply show your message.

10. End Your Thesis

The last section of your thesis presentation is where you end it. Make your ending memorable to keep your audience thinking.

In your conclusion, overview your thesis topic and remind the audience of the answer that your research proved. Next, cover the important research points you want your audience to remember. A slide with icons is a great way to do this. Also, address your shortcomings in your research and how there can be improvements in future research.

Finally, use some more presentation tips by reading this helpful article:

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Now that you’ve been given tips on how to start a thesis presentation and what it should contain, put this information to use when creating your thesis presentation. Save time from having to create a presentation from scratch by downloading a premium template today!

Sarah Joy

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How to prepare an excellent thesis defense

Thesis defence

What is a thesis defense?

How long is a thesis defense, what happens at a thesis defense, your presentation, questions from the committee, 6 tips to help you prepare for your thesis defense, 1. anticipate questions and prepare for them, 2. dress for success, 3. ask for help, as needed, 4. have a backup plan, 5. prepare for the possibility that you might not know an answer, 6. de-stress before, during, and after, frequently asked questions about preparing an excellent thesis defense, related articles.

If you're about to complete, or have ever completed a graduate degree, you have most likely come across the term "thesis defense." In many countries, to finish a graduate degree, you have to write a thesis .

A thesis is a large paper, or multi-chapter work, based on a topic relating to your field of study.

Once you hand in your thesis, you will be assigned a date to defend your work. Your thesis defense meeting usually consists of you and a committee of two or more professors working in your program. It may also include other people, like professionals from other colleges or those who are working in your field.

During your thesis defense, you will be asked questions about your work. The main purpose of your thesis defense is for the committee to make sure that you actually understand your field and focus area.

The questions are usually open-ended and require the student to think critically about their work. By the time of your thesis defense, your paper has already been evaluated. The questions asked are not designed so that you actually have to aggressively "defend" your work; often, your thesis defense is more of a formality required so that you can get your degree.

  • Check with your department about requirements and timing.
  • Re-read your thesis.
  • Anticipate questions and prepare for them.
  • Create a back-up plan to deal with technology hiccups.
  • Plan de-stressing activities both before, and after, your defense.

How long your oral thesis defense is depends largely on the institution and requirements of your degree. It is best to consult your department or institution about this. In general, a thesis defense may take only 20 minutes, but it may also take two hours or more. The length also depends on how much time is allocated to the presentation and questioning part.

Tip: Check with your department or institution as soon as possible to determine the approved length for a thesis defense.

First of all, be aware that a thesis defense varies from country to country. This is just a general overview, but a thesis defense can take many different formats. Some are closed, others are public defenses. Some take place with two committee members, some with more examiners.

The same goes for the length of your thesis defense, as mentioned above. The most important first step for you is to clarify with your department what the structure of your thesis defense will look like. In general, your thesis defense will include:

  • your presentation of around 20-30 minutes
  • questions from the committee
  • questions from the audience (if the defense is public and the department allows it)

You might have to give a presentation, often with Powerpoint, Google slides, or Keynote slides. Make sure to prepare an appropriate amount of slides. A general rule is to use about 10 slides for a 20-minute presentation.

But that also depends on your specific topic and the way you present. The good news is that there will be plenty of time ahead of your thesis defense to prepare your slides and practice your presentation alone and in front of friends or family.

Tip: Practice delivering your thesis presentation in front of family, friends, or colleagues.

You can prepare your slides by using information from your thesis' first chapter (the overview of your thesis) as a framework or outline. Substantive information in your thesis should correspond with your slides.

Make sure your slides are of good quality— both in terms of the integrity of the information and the appearance. If you need more help with how to prepare your presentation slides, both the ASQ Higher Education Brief and James Hayton have good guidelines on the topic.

The committee will ask questions about your work after you finish your presentation. The questions will most likely be about the core content of your thesis, such as what you learned from the study you conducted. They may also ask you to summarize certain findings and to discuss how your work will contribute to the existing body of knowledge.

Tip: Read your entire thesis in preparation of the questions, so you have a refreshed perspective on your work.

While you are preparing, you can create a list of possible questions and try to answer them. You can foresee many of the questions you will get by simply spending some time rereading your thesis.

Here are a few tips on how to prepare for your thesis defense:

You can absolutely prepare for most of the questions you will be asked. Read through your thesis and while you're reading it, create a list of possible questions. In addition, since you will know who will be on the committee, look at the academic expertise of the committee members. In what areas would they most likely be focused?

If possible, sit at other thesis defenses with these committee members to get a feel for how they ask and what they ask. As a graduate student, you should generally be adept at anticipating test questions, so use this advantage to gather as much information as possible before your thesis defense meeting.

Your thesis defense is a formal event, often the entire department or university is invited to participate. It signals a critical rite of passage for graduate students and faculty who have supported them throughout a long and challenging process.

While most universities don't have specific rules on how to dress for that event, do regard it with dignity and respect. This one might be a no-brainer, but know that you should dress as if you were on a job interview or delivering a paper at a conference.

It might help you deal with your stress before your thesis defense to entrust someone with the smaller but important responsibilities of your defense well ahead of schedule. This trusted person could be responsible for:

  • preparing the room of the day of defense
  • setting up equipment for the presentation
  • preparing and distributing handouts

Technology is unpredictable. Life is too. There are no guarantees that your Powerpoint presentation will work at all or look the way it is supposed to on the big screen. We've all been there. Make sure to have a plan B for these situations. Handouts can help when technology fails, and an additional clean shirt can save the day if you have a spill.

One of the scariest aspects of the defense is the possibility of being asked a question you can't answer. While you can prepare for some questions, you can never know exactly what the committee will ask.

There will always be gaps in your knowledge. But your thesis defense is not about being perfect and knowing everything, it's about how you deal with challenging situations. You are not expected to know everything.

James Hayton writes on his blog that examiners will sometimes even ask questions they don't know the answer to, out of curiosity, or because they want to see how you think. While it is ok sometimes to just say "I don't know", he advises to try something like "I don't know, but I would think [...] because of x and y, but you would need to do [...] in order to find out.” This shows that you have the ability to think as an academic.

You will be nervous. But your examiners will expect you to be nervous. Being well prepared can help minimize your stress, but do know that your examiners have seen this many times before and are willing to help, by repeating questions, for example. Dora Farkas at finishyourthesis.com notes that it’s a myth that thesis committees are out to get you.

Two common symptoms of being nervous are talking really fast and nervous laughs. Try to slow yourself down and take a deep breath. Remember what feels like hours to you are just a few seconds in real life.

  • Try meditational breathing right before your defense.
  • Get plenty of exercise and sleep in the weeks prior to your defense.
  • Have your clothes or other items you need ready to go the night before.
  • During your defense, allow yourself to process each question before answering.
  • Go to dinner with friends and family, or to a fun activity like mini-golf, after your defense.

Allow yourself to process each question, respond to it, and stop talking once you have responded. While a smile can often help dissolve a difficult situation, remember that nervous laughs can be irritating for your audience.

We all make mistakes and your thesis defense will not be perfect. However, careful preparation, mindfulness, and confidence can help you feel less stressful both before, and during, your defense.

Finally, consider planning something fun that you can look forward to after your defense.

It is completely normal to be nervous. Being well prepared can help minimize your stress, but do know that your examiners have seen this many times before and are willing to help, by repeating questions for example if needed. Slow yourself down, and take a deep breath.

Your thesis defense is not about being perfect and knowing everything, it's about how you deal with challenging situations. James Hayton writes on his blog that it is ok sometimes to just say "I don't know", but he advises to try something like "I don't know, but I would think [...] because of x and y, you would need to do [...] in order to find out".

Your Powerpoint presentation can get stuck or not look the way it is supposed to do on the big screen. It can happen and your supervisors know it. In general, handouts can always save the day when technology fails.

  • Dress for success.
  • Ask for help setting up.
  • Have a backup plan (in case technology fails you).
  • Deal with your nerves.

thesis defense cartoon

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  • Presentation Tips

How to Start a Thesis Defense Presentation

How to Start a Thesis Defense Presentation | Quick Tips & Tutorial for your presentations

After months and years of hard work, the moment to wrap things all up is finally here—your thesis defense presentation.

Whether you’re pursuing a master’s degree or doctorate, it’s the final step to that much-deserved achievement. 

A thesis defense requires a lot of prior research and preparation. And as important as its content is, so is how you present it because a stunning design with clear data and text hierarchy plays an immense role in comprehension.

In this article, we’ll explore how you make your thesis defense .

The organization is the key to success. Establishing some previous steps before any project or work is essential for the result to be very positive. And the defense of a thesis could not be less. 

Below, we will develop all the necessary steps to make a thesis defense presentation and we will give you some tips on how to carry them out.

How to Make an Amazing Presentation

Defining the concept of your thesis presentation, structuring your thesis defense presentation, how do you welcome the audience, tell them why you did this thesis, go into the content by explaining your thesis part by part, how to end the defense of the thesis.

After a long time of research and study, the content of your thesis is ready. Now, you have to find the best way to reflect all that effort behind your work. The information comes across more clearly if you use a visual format, as it attracts the attention of the audience. To present your thesis information in a clear, concise, and ultimately amazing way, you can use one of our unique thesis defense templates , available at Slidesgo.

As an example, in this article, we are going to use the Ecology Thesis template . With it, we will show you what to include in your presentation and how to make an attractive design.

After choosing the Google Slides and PowerPoint template that best suits the needs and subject matter of your thesis, it is time to define an overarching concept.

This is the main theme on which your designs are based. It must be relevant to your thesis as its purpose is to guide your selection of colors, typography, images, style, etc. 

These must be portrayed in a way that supports the main message of your slides and should be aligned with your concept both visually and sociologically.

Once you have defined the concept, you will have to move on to the next step: structuring the content of your thesis. A good structure will show that there is a good organization behind the work, but most importantly: it will highlight your content.

In this article, we are going to show you a structure that could be a good example of how to structure a thesis, but you can adapt it to what your specific content requires.

Before you begin your thesis defense, you should welcome your audience. A good presentation will make you connect with your audience, which will result in more general interest in your work.

Use an appropriate language register (avoid informal language), but be approachable and natural.

"Welcome to the thesis defense on [the title of your thesis]". Next, introduce yourself with your name and give a short description of your background and occupation.

Don't forget to say “thank you for attending!”

To continue establishing that connection with your audience, explain the reasons that led you to do this thesis. Tell the professional reasons, and you can even say some personal ones, which will denote closeness, and your audience will appreciate it.

Now it's time to go into the content of the thesis ! After these preliminary steps, which are just as important as the thesis itself, it is time to explain part by part the structure (which you had previously established). We are going to propose a structure for your project, but the final decision is always yours!

thesis defense cartoon

First impressions are very important. Because your title page is the very first thing viewers see, it must be striking and impactful. It also sets the stage for the rest of your slides.

In one glance, the following should be established:

  • Thesis defense topic
  • Design style

For instance, the ecology thesis’s title page uses illustrations of a natural landscape to represent the topic of nature and a striking shade of blue to set the tone.

The sans serif font used depicts clean-cut typography and style and the thesis topic is written in large and bold typography, which draws attention to it immediately.

thesis defense cartoon

Right after your title page, include an introduction slide to provide more details about your topic. 

This means explaining what you hope to answer with your research, its importance to your field, and why you chose it.

Continue to incorporate design elements relevant to your concept. This example has done just that by using a different natural landscape and including animals. For coherence, stick to the same typography and style throughout your presentation.

thesis defense cartoon

The aim of the literature review slide is to illustrate your knowledge of your thesis topic and any relevant theories.

Walls of text kill a design. For clarity, we recommend presenting this with bullet points. Each one should be short and sweet and only touch on the basics; you can elaborate on them in your speech. 

Don’t forget to be consistent with your design. In our example, we’ve maintained the tone of blue chosen and added illustrations of leaves in the far corners of the slide. 

Also, address similar research that has been done. This is to showcase your topic’s originality and, if relevant, how it’s different and/or an improvement from previously done research. 

thesis defense cartoon

This is one of the most important parts of a thesis defense presentation.

It allows your viewers to assess the rationality and validity of your approach and consequently, the accuracy of your results.

A great methodology slide explains the what , how, and why :

  • What method did you use for your research
  • Why did you choose it
  • How did you conduct it

Because this part of your thesis will be rather technical, the most effective way to aid understanding is by using graphics like charts and tables. 

thesis defense cartoon

Keep text to a minimum to avoid drawing attention away from the graphics. If there is a text that must absolutely be included, consider using bullet points and keep them short.

Don’t forget to maintain color, style, and typography coherence.

thesis defense cartoon

The results slides are easily the most quantitative part of a thesis defense. 

Here, your aim is to simply introduce your findings. Select the most impactful data and highlight them here.

Just as with methodology, use graphics like charts, tables, and graphs to portray the data in a clear way. And, once again, try not to write too much text. Let the visual content do the talking .

thesis defense cartoon

After you’ve introduced your data, the next step would be to help your audience make sense of it. That means understanding what it means in the context of your thesis research topic and your discipline. 

Simply put, you should answer the question: What do the numbers mean?

The best way to approach this would be to do it as if you were creating an infographic . 

Illustrations like icons are a quick and simple way to represent your message. It also reduces the amount of text on your slide, which makes the information much more digestible. 

For a balanced thesis presentation, you should also address any outliers and anomalies.

To quote bestselling author Robin Sharma, “Starting strong is good. Finishing strong is epic.”

That’s exactly what to aim for in your conclusion.

Provide an overview of your thesis topic and remind your audience what you set out to answer with your research. In our example, we’ve used three icons accompanied by a short title and text. 

thesis defense cartoon

Following that, reiterate the important points of your research results you want your audience to take away from your thesis defense presentation. 

You can do so by expanding the next slide to have more icons and points, for example.

thesis defense cartoon

Don’t forget to address any shortcomings and limitations in your approach and extra points for suggesting possible improvements for future research.

We are going to give you a little tip to make your thesis defense a success. You can combine your defense with good public speaking techniques. Take a look at our article "How to become a great speaker" .

We hope this article has been of great help, have you already seen our templates to make the presentation of your thesis ? Choose the one that best suits your needs, we are sure that one of them will go perfectly with your thesis presentation! 

Good luck from Slidesgo.

thesis defense cartoon

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College of Agriculture & Natural Resources │ College of Engineering Department of Biosystems & Agricultural Engineering

Thesis defense: emilia emerson.

August 8, 2024 - August 9, 2024

Farrall Hall room 208 or Zoom

Thesis Defense 

Emilia Emerson

“The Effect of Hydraulic Retention Time on Recoverable Ammonia, Virus-Particle Association, and Bacterial, Fungal, and Viral Populations in a Bench Scale Activated Sludge Municipal Wastewater Treatment System”

Thursday, August 8, 2024

9:00 AM – 10:00 AM EST

Farrall Hall room 208

Zoom: https://msu.zoom.us/j/91202303218

Committee Members

Dr. Wei Liao, Department of Biosystems & Agricultural Engineering (Chair)

Dr. Joan Rose, Department of Fisheries and Wildlife (Co-Chair)

Dr. Yan (Susie) Liu, Department of Biosystems & Agricultural Engineering

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RTX Corporation: Set To Reach New Heights, Reiterate Buy

Juxtaposed Ideas profile picture

  • RTX continues to outperform the wider market, thanks to the powder metal meltdown which occurred a year ago, significantly aided by the still robust performance metrics.
  • The management's assumptions surrounding the powder metal issue and peak Aircraft On Ground [AOG] have also worked out as expected, attributed to the favorable support agreements.
  • RTX continues to report double beat FQ2'24 earnings call while raising their FY2024 guidance, thanks to the robust commercial/ defense spending.
  • The growing backlog also offers great insights into its long-term top/ bottom lines, explaining the consensus raised forward estimates through FY2026.
  • While we are reiterating our Buy rating here, interested investors may want to observe the RTX stock movement a little longer before adding, attributed to the ongoing market rotation.

Airplane flying above clouds at sunset

Colin Anderson Productions pty ltd

We previously covered RTX Corporation (NYSE: NYSE: RTX ) in May 2024, discussing its robust prospects across commercial and defense aerospace markets, with the growing backlog offering great insights into its long-term top/ bottom lines, further aided by the management's cost reduction initiatives.

Combined with the underway powdered metal remediation and peak Aircraft On Ground [AOG] by FQ1'24 with things to moderate through 2026, we had maintained our Buy rating then.

Since then, RTX has outperformed at +8.9% compared to the wider market at +4.6%, thanks to the double beat FQ2'24 earnings call and the raised FY2024 guidance.

Combined with the robust commercial and defense spending trends as the macroeconomic outlook slowly recovers/ consumer travel rebounds and the uncertain geopolitical events continue, we believe that the stock remains compelling for growth and dividend oriented investors.

RTX's Investment Thesis Remains Robust, Thanks To The Promising Commercial & Defense Spending Trends

RTX 1Y Stock Price

RTX 1Y Stock Price

Trading View

RTX has had a painful pullback after its FQ2'23 earnings call, mostly attributed to the negative press related to the powdered metal manufacturing quality issues and the potential impact on its financial performance.

Even so, the recent rally from the September/ October 2023 bottom and the subsequent breakout after the excellent FQ2'24 earnings call further underscore the reversal in market sentiments, implying that the powder metal issue may very well be behind us.

Readers must note that the recent break out is also attributed to RTX's double beat FQ2'24 earnings call, with adj revenues of $19.8B ( +2.5% QoQ / +8.1% YoY ), adj EPS of $1.41 (+5.2% QoQ/ +9.3% YoY), and Free Cash Flow generation of $2.2B (+2,100% QoQ/ +1,039% YoY).

From the robust profitability, it is apparent that the management's assumptions surrounding the powder metal issue and ongoing AOG have worked out as expected, significantly aided by the favorable support agreements covering the majority of the impacted fleet.

At the same time, demand remains robust, as observed in RTX's growing multi-year backlog of $129B for commercial contracts (+3.2% QoQ/ +15.1% YoY) and $77B for defense contracts (inline QoQ/ +5.4% YoY).

The excellent backlog growth in its commercial segment is unsurprising indeed, with the same already estimated by Boeing ( BA ) at a projected +3% increase in airplane deliveries over the next twenty years and over 44K in new commercial airplanes by 2043.

At the same time, due to the ongoing geopolitical events in Ukraine and Gaza, it is only natural that more countries are beefing up their defense capabilities.

The same has been observed in Lockheed Martin's ( LMT ) outsized defense multi-year backlog of $158B and the US government's upsized FY2024 defense spending worth $2.12T (+39.4% YoY), along with RTX's new defense contracts from Germany, amongst others.

Furthermore, readers must note that the US government under President Trump had increased the defense budget by approximately $225B then, with defense spending likely to remain elevated to " counter Russia and China ." This also coincides with the "strategy of peace through strength:"

The idea is that if you have strength then that discourages your neighbor's bad people from attacking you. ( Reuters )

And it is for these reasons that RTX's growing capex and capacity ramp up may support its long-term growth opportunities in the commercial and defense new contracts/ aftermarket services.

Perhaps this is why the management has raised their FY2024 guidance, with revenues of $79.12B ( +14.8% YoY ) and adj EPS of $5.40 (+6.7% YoY), despite the impacted Free Cash Flow of $4.7B (-14.5% YoY), compared to the original guidance of $78.5B (+13.9% YoY), $5.32 (+5.1% YoY), and $5.7B (+3.6% YoY), respectively.

With the impacted Free Cash Flow only attributed to the $1B of one-time payment related to the prosecution agreement with the Department of Justice, we believe that readers need not be concerned indeed.

This is especially since the final sum remains more than sufficient to cover its annualized dividend obligations of $3.32B.

The Consensus Forward Estimates

The Consensus Forward Estimates

Tikr Terminal

As a result of the excellent visibility into its intermediate term top/ bottom-lines and more ' significant wins ' expected in H2'24, it is unsurprising that the consensus have raised their forward estimates, with RTX expected to chart an accelerated top/ bottom-line growth at a CAGR of +8.8%/ +10.5% through FY2026.

RTX Valuations

RTX Valuations

Seeking Alpha

With these growth projections well exceeding the pre-pandemic levels of +8.3%/ +7% and the original estimates of +8%/ +9.6%, respectively, it is unsurprising that the market has also upgraded RTX's FWD P/E valuations to 21.48x, compared to its 5Y average of 19.29x.

Even when compared to its aerospace and defense peers, such as LMT at FWD P/E valuations to 20.25x with the projected adj EPS growth at a CAGR of +2.8% through FY2026 and Rolls-Royce Holdings ( OTCPK:RYCEY ) ( OTCPK:RYCEF ) at 28.31x/ +13.6%, it is apparent that RTX is still reasonably valued here, offering interested investors with a decent margin of safety.

So, Is RTX Stock A Buy , Sell, or Hold?

RTX 5Y Stock Price

RTX 5Y Stock Price

For now, RTX has finally charted a new peak at the time of writing, while breaking out of its previous trading ranges and running away from its 50/ 100/ 200 day moving averages.

For context, we had offered a fair value estimate of $102.10 in our last article, based on the LTM adj EPS of $5.17 and the FWD P/E valuations of 19.76x (nearer to its 5Y mean). This is on top of the long-term price target of $133.50, based on the consensus FY2026 adj EPS estimates of $6.76.

Based on RTX's higher LTM adj EPS of $5.29 and the same P/E, we are looking at an updated fair value estimate of $104.50, implying that the stock is still trading at a notable premium at current levels.

Even so, based on the upgraded consensus FY2026 adj EPS estimates of $6.82 (+0.8%), we are looking at an updated long-term price target of $134.70, with there remaining a decent upside potential of +14.6% despite the recent rally.

While the recent capital appreciation has impacted RTX's forward yields at 2.16%, compared to its 4Y average of 2.45%, we are not overly concerned indeed since its overall return profile remains excellent.

Does this mean that we are still rating the stock as a Buy?

Yes indeed, though with a few caveat.

Risk Warning

One, with RTX already charting an impressive 1Y return of +34% well outperforming the SPY at +22%, there may be near-term uncertainties as the wider market rotates from high growth stocks and as we enter the typically slow summer doldrums in August .

As a result, interested investors may want to hold on their dry powders and observe the stock movement for a little longer before adding upon a moderate pullback, preferably to its previous support levels of $104s - with those levels also nearer to our fair value estimates.

Two, with RTX set to pay out their next dividend in September 05, 2024, we may see moderate selling pressure occur after the ex-dividend date of August 16, 2024, as typically observed with dividend stocks.

As a result, investors may consider waiting until then to add/ dollar cost average, attributed to the recent jump in stock prices by +12% after the recent FQ2'24 earnings call

All in all, a moderate amount of patience is recommended for an improved margin of safety.

This article was written by

Juxtaposed Ideas profile picture

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. The analysis is provided exclusively for informational purposes and should not be considered professional investment advice. Before investing, please conduct personal in-depth research and utmost due diligence, as there are many risks associated with the trade, including capital loss.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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