Raytheon Technologies (RTX) Gains But Lags Market: What You Should Know
In the latest trading session, Raytheon Technologies (RTX) closed at $84.07, marking a +0.47% move from the previous day. This move lagged the S&P 500's daily gain of 1.02%. Elsewhere, the Dow gained 0.74%, while the tech-heavy Nasdaq lost 0.4%.
Heading into today, shares of the an aerospace and defense company had lost 4.16% over the past month, lagging the Aerospace sector's loss of 2.75% and the S&P 500's loss of 0.91% in that time.
Investors will be hoping for strength from Raytheon Technologies as it approaches its next earnings release. The company is expected to report EPS of $1.01, up 36.49% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $17.22 billion, up 4.85% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.19 per share and revenue of $64.6 billion, which would represent changes of +53.48% and +1.83%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Raytheon Technologies. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. The Zacks Consensus EPS estimate has moved 0.12% lower within the past month. Raytheon Technologies is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Raytheon Technologies is currently trading at a Forward P/E ratio of 19.95. Its industry sports an average Forward P/E of 23.45, so we one might conclude that Raytheon Technologies is trading at a discount comparatively.
We can also see that RTX currently has a PEG ratio of 1.52. 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 3.18 as of yesterday's close.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 169, putting it in the bottom 34% 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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