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Raytheon Technologies (RTX) Outpaces Stock Market Gains: What You Should Know
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Raytheon Technologies (RTX - Free Report) closed the most recent trading day at $74.48, moving +1.97% from the previous trading session. This change outpaced the S&P 500's 0.28% gain on the day. At the same time, the Dow added 0.35%, and the tech-heavy Nasdaq gained 0.5%.
Prior to today's trading, shares of the an aerospace and defense company had gained 12.39% over the past month. This has lagged the Aerospace sector's gain of 19.68% and outpaced the S&P 500's gain of 5.42% in that time.
Investors will be hoping for strength from RTX as it approaches its next earnings release. 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.
RTX's full-year Zacks Consensus Estimates are calling for earnings of $2.78 per share and revenue of $64.28 billion. These results would represent year-over-year changes of -66.34% and -16.56%, respectively.
Investors should also note any recent changes to analyst estimates for RTX. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. RTX is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, RTX is currently trading at a Forward P/E ratio of 26.25. This represents a discount compared to its industry's average Forward P/E of 38.43.
Also, we should mention that RTX has a PEG ratio of 2.19. 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 10.03 as of yesterday's close.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 200, putting it in the bottom 22% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Raytheon Technologies (RTX) Outpaces Stock Market Gains: What You Should Know
Raytheon Technologies (RTX - Free Report) closed the most recent trading day at $74.48, moving +1.97% from the previous trading session. This change outpaced the S&P 500's 0.28% gain on the day. At the same time, the Dow added 0.35%, and the tech-heavy Nasdaq gained 0.5%.
Prior to today's trading, shares of the an aerospace and defense company had gained 12.39% over the past month. This has lagged the Aerospace sector's gain of 19.68% and outpaced the S&P 500's gain of 5.42% in that time.
Investors will be hoping for strength from RTX as it approaches its next earnings release. 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.
RTX's full-year Zacks Consensus Estimates are calling for earnings of $2.78 per share and revenue of $64.28 billion. These results would represent year-over-year changes of -66.34% and -16.56%, respectively.
Investors should also note any recent changes to analyst estimates for RTX. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. RTX is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, RTX is currently trading at a Forward P/E ratio of 26.25. This represents a discount compared to its industry's average Forward P/E of 38.43.
Also, we should mention that RTX has a PEG ratio of 2.19. 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 10.03 as of yesterday's close.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 200, putting it in the bottom 22% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.