Raytheon Technologies (RTX) Gains As Market Dips: What You Should Know
Raytheon Technologies (RTX) closed at $59.94 in the latest trading session, marking a +0.71% move from the prior day. This change outpaced the S&P 500's 0.66% loss on the day. Elsewhere, the Dow lost 0.58%, while the tech-heavy Nasdaq lost 0.8%.
Coming into today, shares of the an aerospace and defense company had lost 3.13% in the past month. In that same time, the Aerospace sector lost 1.13%, while the S&P 500 gained 5.22%.
Wall Street will be looking for positivity from RTX as it approaches its next earnings report date. This is expected to be October 27, 2020. On that day, RTX is projected to report earnings of $0.48 per share, which would represent a year-over-year decline of 78.28%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.37 billion, down 21.16% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.85 per share and revenue of $64.28 billion. These totals would mark changes of -65.5% and -16.57%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for RTX. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.41% lower. RTX is holding a Zacks Rank of #4 (Sell) right now.
Digging into valuation, RTX currently has a Forward P/E ratio of 20.88. For comparison, its industry has an average Forward P/E of 27.56, which means RTX is trading at a discount to the group.
We can also see that RTX currently has a PEG ratio of 1.74. 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. The Aerospace - Defense Equipment was holding an average PEG ratio of 8.23 at yesterday's closing price.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 215, which puts it in the bottom 16% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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