Raytheon Technologies (RTX) closed at $84.32 in the latest trading session, marking a -0.97% move from the prior day. This change was narrower than the S&P 500's 1.71% loss on the day. At the same time, the Dow lost 1.7%, and the tech-heavy Nasdaq lost 0.07%.
Coming into today, shares of the an aerospace and defense company had lost 7.88% in the past month. In that same time, the Aerospace sector lost 6.39%, while the S&P 500 lost 8.68%.
Investors will be hoping for strength from Raytheon Technologies as it approaches its next earnings release. In that report, analysts expect Raytheon Technologies to post earnings of $1.14 per share. This would mark a year-over-year decline of 9.52%. Meanwhile, our latest consensus estimate is calling for revenue of $17.28 billion, up 6.57% from the prior-year quarter.
RTX's full-year Zacks Consensus Estimates are calling for earnings of $4.68 per share and revenue of $68.29 billion. These results would represent year-over-year changes of +9.6% and +6.05%, respectively.
Investors should also note any recent changes to analyst estimates for Raytheon Technologies. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 has moved 0.57% higher within the past month. Raytheon Technologies is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Raytheon Technologies has a Forward P/E ratio of 18.18 right now. This represents a discount compared to its industry's average Forward P/E of 25.6.
Also, we should mention that RTX has a PEG ratio of 1.74. 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. Aerospace - Defense Equipment stocks are, on average, holding a PEG ratio of 2.06 based on yesterday's closing prices.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 211, which puts it in the bottom 17% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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