Raytheon Technologies (RTX) Gains But Lags Market: What You Should Know
In the latest trading session, Raytheon Technologies (RTX) closed at $57.49, marking a +0.19% move from the previous day. This move lagged the S&P 500's daily gain of 1.6%. Elsewhere, the Dow gained 1.34%, while the tech-heavy Nasdaq added 2.26%.
Coming into today, shares of the an aerospace and defense company had lost 5.78% in the past month. In that same time, the Aerospace sector lost 8.04%, while the S&P 500 lost 5.3%.
RTX will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.48, down 78.28% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.37 billion, down 21.16% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.25 per share and revenue of $64.28 billion, which would represent changes of -60.65% and -16.57%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for RTX. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. RTX currently has a Zacks Rank of #3 (Hold).
Investors should also note RTX's current valuation metrics, including its Forward P/E ratio of 17.68. Its industry sports an average Forward P/E of 31.74, so we one might conclude that RTX is trading at a discount comparatively.
It is also worth noting that RTX currently has a PEG ratio of 1.47. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. RTX's industry had an average PEG ratio of 7.49 as of yesterday's close.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 225, which puts it in the bottom 12% 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.
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