Raytheon Technologies (RTX) Gains But Lags Market: What You Should Know
Raytheon Technologies (RTX) closed the most recent trading day at $97.02, moving +0.95% from the previous trading session. This move lagged the S&P 500's daily gain of 1.06%. At the same time, the Dow added 1.05%, and the tech-heavy Nasdaq gained 0.4%.
Heading into today, shares of the an aerospace and defense company had lost 0.14% over the past month, outpacing the Aerospace sector's loss of 1.31% and the S&P 500's loss of 8.3% in that time.
Raytheon Technologies will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.01, down 1.94% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $16.46 billion, up 3.68% from the year-ago period.
RTX's full-year Zacks Consensus Estimates are calling for earnings of $4.77 per share and revenue of $68.09 billion. These results would represent year-over-year changes of +11.71% and +5.75%, respectively.
Investors should also note any recent changes to analyst estimates for Raytheon Technologies. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Raytheon Technologies is currently a Zacks Rank #3 (Hold).
Investors should also note Raytheon Technologies's current valuation metrics, including its Forward P/E ratio of 20.14. Its industry sports an average Forward P/E of 20.79, so we one might conclude that Raytheon Technologies is trading at a discount comparatively.
Also, we should mention that RTX has a PEG ratio of 1.92. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Aerospace - Defense Equipment was holding an average PEG ratio of 1.92 at yesterday's closing price.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 99, putting it in the top 40% 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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