Raytheon Technologies (RTX) closed at $67.51 in the latest trading session, marking a +0.06% move from the prior day. This change outpaced the S&P 500's 0.34% loss on the day. Meanwhile, the Dow gained 0.05%, and the Nasdaq, a tech-heavy index, lost 0.69%.
RTX will be looking to display strength as it nears its next earnings release. In that report, analysts expect RTX to post earnings of $0.36 per share. This would mark a year-over-year decline of 83.64%. Our most recent consensus estimate is calling for quarterly revenue of $15.73 billion, down 19.87% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.51 per share and revenue of $67 billion. These totals would mark changes of -57.51% and -13.04%, respectively, from last year.
Any recent changes to analyst estimates for RTX should also be noted by investors. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate has moved 2.35% 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 19.2. This represents a discount compared to its industry's average Forward P/E of 28.9.
Investors should also note that RTX has a PEG ratio of 1.6 right now. 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. RTX's industry had an average PEG ratio of 5.92 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 200, which puts it in the bottom 22% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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