Raytheon (RTN) closed at $159.16 in the latest trading session, marking a -0.26% move from the prior day. This change lagged the S&P 500's 0.02% loss on the day. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, lost 0.21%.
Prior to today's trading, shares of the defense contractor had lost 7.45% over the past month. This has lagged the Aerospace sector's loss of 0.04% and the S&P 500's loss of 1.4% in that time.
Wall Street will be looking for positivity from RTN as it approaches its next earnings report date. This is expected to be January 24, 2019. In that report, analysts expect RTN to post earnings of $2.88 per share. This would mark year-over-year growth of 41.87%. Our most recent consensus estimate is calling for quarterly revenue of $7.50 billion, up 10.6% from the year-ago period.
Investors should also note any recent changes to analyst estimates for RTN. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.42% lower. RTN currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, RTN is holding a Forward P/E ratio of 13.49. Its industry sports an average Forward P/E of 18.03, so we one might conclude that RTN is trading at a discount comparatively.
Investors should also note that RTN has a PEG ratio of 0.97 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Aerospace - Defense Equipment stocks are, on average, holding a PEG ratio of 2.05 based on yesterday's closing prices.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 61, which puts it in the top 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.