Raytheon (RTN) closed the most recent trading day at $199.80, moving +0.23% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.39%. Meanwhile, the Dow lost 0.95%, and the Nasdaq, a tech-heavy index, lost 0.83%.
Coming into today, shares of the defense contractor had gained 0.01% in the past month. In that same time, the Aerospace sector lost 3.73%, while the S&P 500 lost 0.1%.
RTN will be looking to display strength as it nears its next earnings release, which is expected to be October 24, 2019. The company is expected to report EPS of $2.85, up 26.67% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.26 billion, up 6.67% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.73 per share and revenue of $29.07 billion. These totals would mark changes of +10.56% and +7.44%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for RTN. These revisions help to show the ever-changing nature of 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. 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, 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 remained stagnant. RTN is holding a Zacks Rank of #4 (Sell) right now.
Digging into valuation, RTN currently has a Forward P/E ratio of 16.99. For comparison, its industry has an average Forward P/E of 22.44, which means RTN is trading at a discount to the group.
We can also see that RTN currently has a PEG ratio of 1.59. 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. Aerospace - Defense Equipment stocks are, on average, holding a PEG ratio of 2.21 based on yesterday's closing prices.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 77, putting it in the top 31% 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.
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