Raytheon (RTN) closed the most recent trading day at $183.16, moving -0.74% from the previous trading session. This change was narrower than the S&P 500's 1.71% loss on the day. Elsewhere, the Dow lost 0.98%, while the tech-heavy Nasdaq lost 1.87%.
Coming into today, shares of the defense contractor had lost 19.26% in the past month. In that same time, the Aerospace sector lost 14.63%, while the S&P 500 lost 9.13%.
Wall Street will be looking for positivity from RTN as it approaches its next earnings report date. On that day, RTN is projected to report earnings of $2.75 per share, which would represent a year-over-year decline of 0.72%. Our most recent consensus estimate is calling for quarterly revenue of $6.98 billion, up 3.69% from the year-ago period.
RTN's full-year Zacks Consensus Estimates are calling for earnings of $12.61 per share and revenue of $31.13 billion. These results would represent year-over-year changes of +5.79% and +6.7%, respectively.
Investors should also note any recent changes to analyst estimates for RTN. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. RTN is currently a Zacks Rank #4 (Sell).
Digging into valuation, RTN currently has a Forward P/E ratio of 14.63. Its industry sports an average Forward P/E of 23.04, so we one might conclude that RTN is trading at a discount comparatively.
Investors should also note that RTN has a PEG ratio of 1.9 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Aerospace - Defense Equipment was holding an average PEG ratio of 2.54 at yesterday's closing price.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 114, putting it in the top 45% 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.
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