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Raytheon Technologies (RTX) Stock Sinks As Market Gains: What You Should Know

·3 min read

Raytheon Technologies (RTX) closed at $88.03 in the latest trading session, marking a -1.92% move from the prior day. This change lagged the S&P 500's daily gain of 0.3%. Meanwhile, the Dow gained 0.46%, and the Nasdaq, a tech-heavy index, lost 0.09%.

Coming into today, shares of the an aerospace and defense company had lost 5.06% in the past month. In that same time, the Aerospace sector lost 1.77%, while the S&P 500 lost 4.13%.

Investors will be hoping for strength from Raytheon Technologies as it approaches its next earnings release. The company is expected to report EPS of $1.14, down 9.52% from the prior-year quarter. 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 $67.54 billion. These results would represent year-over-year changes of +9.6% and +4.89%, respectively.

It is also important to note the recent changes to analyst estimates for Raytheon Technologies. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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. Raytheon Technologies is holding a Zacks Rank of #4 (Sell) right now.

Valuation is also important, so investors should note that Raytheon Technologies has a Forward P/E ratio of 19.16 right now. This valuation marks a discount compared to its industry's average Forward P/E of 25.53.

Meanwhile, RTX's PEG ratio is currently 1.84. 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 industry currently had an average PEG ratio of 1.9 as of yesterday's close.

The Aerospace - Defense Equipment industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 210, which puts it in the bottom 17% 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.

To follow RTX in the coming trading sessions, be sure to utilize Zacks.com.


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