Raytheon Technologies (RTX) closed at $61.62 in the latest trading session, marking a -0.48% move from the prior day. This change lagged the S&P 500's daily gain of 1.54%. At the same time, the Dow added 0.85%, and the tech-heavy Nasdaq gained 1.87%.
Coming into today, shares of the an aerospace and defense company had lost 3.43% in the past month. In that same time, the Aerospace sector gained 1.4%, while the S&P 500 gained 0.57%.
Investors will be hoping for strength from RTX as it approaches its next earnings release. The company is expected to report EPS of $1.11, down 49.55% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $13.96 billion, down 28.91% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.23 per share and revenue of $62.63 billion. These totals would mark changes of -60.9% and -18.71%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for RTX. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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.
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 8.06% lower within the past month. RTX is holding a Zacks Rank of #5 (Strong Sell) right now.
Digging into valuation, RTX currently has a Forward P/E ratio of 19.17. This represents a discount compared to its industry's average Forward P/E of 24.39.
Investors should also note that RTX has a PEG ratio of 1.6 right now. 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. The Aerospace - Defense Equipment was holding an average PEG ratio of 6.6 at yesterday's closing price.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 214, putting it in the bottom 16% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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