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Is Raytheon (RTN) Outperforming Other Aerospace Stocks This Year?

Zacks Equity Research
Asbury Automotive (ABG) shares have started gaining and might continue moving higher in the near term, as indicated by solid earnings estimate revisions.

The Aerospace group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Raytheon (RTN) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? One simple way to answer this question is to take a look at the year-to-date performance of RTN and the rest of the Aerospace group's stocks.

Raytheon is one of 37 individual stocks in the Aerospace sector. Collectively, these companies sit at #1 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. RTN is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for RTN's full-year earnings has moved 0.60% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that RTN has returned about 5.19% since the start of the calendar year. Meanwhile, stocks in the Aerospace group have gained about 12.29% on average. This means that Raytheon is performing better than its sector in terms of year-to-date returns.

To break things down more, RTN belongs to the Aerospace - Defense Equipment industry, a group that includes 21 individual companies and currently sits at #54 in the Zacks Industry Rank. On average, this group has gained an average of 10.03% so far this year, meaning that RTN is slightly underperforming its industry in terms of year-to-date returns.

Going forward, investors interested in Aerospace stocks should continue to pay close attention to RTN as it looks to continue its solid performance.


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