Raytheon Technologies (RTX) closed at $57.46 in the latest trading session, marking a -0.14% move from the prior day. This move lagged the S&P 500's daily gain of 0.53%. At the same time, the Dow added 0.13%, and the tech-heavy Nasdaq gained 1.42%.
Heading into today, shares of the an aerospace and defense company had lost 7.19% over the past month, lagging the Aerospace sector's loss of 4.6% and the S&P 500's loss of 3.76% in that time.
Investors will be hoping for strength from RTX as it approaches its next earnings release. The company is expected to report EPS of $0.10, down 95.48% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.37 billion, down 21.16% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.16 per share and revenue of $64.28 billion, which would represent changes of -61.74% and -16.57%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for RTX. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 3.32% lower. RTX is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, RTX is currently trading at a Forward P/E ratio of 18.19. Its industry sports an average Forward P/E of 22.22, so we one might conclude that RTX 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 7.56 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 219, which puts it in the bottom 14% 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.
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