United Technologies (RTX) Stock Sinks As Market Gains: What You Should Know
United Technologies (RTX) closed at $69.78 in the latest trading session, marking a -0.71% move from the prior day. This change lagged the S&P 500's daily gain of 1.49%. Meanwhile, the Dow gained 0.69%, and the Nasdaq, a tech-heavy index, added 2.56%.
Prior to today's trading, shares of the maker of elevators, jet engines and other products had lost 4.43% over the past month. This has was narrower than the Aerospace sector's loss of 4.69% and lagged the S&P 500's gain of 1.44% in that time.
RTX will be looking to display strength as it nears its next earnings release, which is expected to be January 26, 2021. In that report, analysts expect RTX to post earnings of $0.73 per share. This would mark a year-over-year decline of 62.37%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.24 billion, down 16.94% from the year-ago period.
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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.38% lower within the past month. RTX currently has a Zacks Rank of #3 (Hold).
Digging into valuation, RTX currently has a Forward P/E ratio of 19.69. For comparison, its industry has an average Forward P/E of 32.26, which means RTX is trading at a discount to the group.
We can also see that RTX currently has a PEG ratio of 1.64. 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. The Aerospace - Defense Equipment industry currently had an average PEG ratio of 10.62 as of yesterday's close.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 120, putting it in the top 48% 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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