In the latest trading session, Raytheon Technologies (RTX) closed at $88.85, marking a -0.67% move from the previous day. This change lagged the S&P 500's daily loss of 0.18%.
Heading into today, shares of the an aerospace and defense company had gained 6.07% over the past month, outpacing the Aerospace sector's gain of 3.97% and the S&P 500's gain of 0.04% in that time.
RTX will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.92, up 130% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.78 billion, up 12.19% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.71 per share and revenue of $65.23 billion. These totals would mark changes of +35.9% and +2.83%, respectively, from last year.
Any recent changes to analyst estimates for RTX 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. RTX is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, RTX currently has a Forward P/E ratio of 24.11. This represents a discount compared to its industry's average Forward P/E of 26.41.
Meanwhile, RTX's PEG ratio is currently 1.7. 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 industry currently had an average PEG ratio of 4.25 as of yesterday's close.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 170, putting it in the bottom 34% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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