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Raytheon Technologies (RTX) Dips More Than Broader Markets: What You Should Know

·3 min read

In the latest trading session, Raytheon Technologies (RTX) closed at $89.75, marking a -1.19% move from the previous day. This move lagged the S&P 500's daily loss of 0.78%. Elsewhere, the Dow lost 0.88%, while the tech-heavy Nasdaq lost 0.19%.

Heading into today, shares of the an aerospace and defense company had lost 3.11% over the past month, lagging the Aerospace sector's loss of 0.86% and outpacing the S&P 500's loss of 3.4% in that time.

Investors will be hoping for strength from Raytheon Technologies as it approaches its next earnings release. On that day, Raytheon Technologies is projected to report earnings of $1.14 per share, which would represent a year-over-year decline of 9.52%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $17.28 billion, up 6.57% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.68 per share and revenue of $67.54 billion, which would represent changes of +9.6% and +4.89%, respectively, from the prior year.

Any recent changes to analyst estimates for Raytheon Technologies should also be noted by investors. 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.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Raytheon Technologies is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Raytheon Technologies currently has a Forward P/E ratio of 19.39. This represents a discount compared to its industry's average Forward P/E of 26.03.

Investors should also note that RTX has a PEG ratio of 1.86 right now. 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 1.93 as of yesterday's close.

The Aerospace - Defense Equipment industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 207, putting it in the bottom 18% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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