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Raytheon Technologies (RTX) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Raytheon Technologies (RTX - Free Report) closed at $88.36, marking a -1.49% move from the previous day. This change lagged the S&P 500's 1.1% loss on the day. Meanwhile, the Dow lost 0.89%, and the Nasdaq, a tech-heavy index, added 0.03%.

Coming into today, shares of the an aerospace and defense company had gained 6.7% in the past month. In that same time, the Aerospace sector gained 6.08%, while the S&P 500 lost 1.81%.

Investors will be hoping for strength from Raytheon Technologies as it approaches its next earnings release, which is expected to be January 25, 2022. In that report, analysts expect Raytheon Technologies to post earnings of $1.01 per share. This would mark year-over-year growth of 36.49%. Our most recent consensus estimate is calling for quarterly revenue of $17.22 billion, up 4.85% from the year-ago period.

Any recent changes to analyst estimates for Raytheon Technologies should also be noted by investors. 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 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 0.51% lower within the past month. Raytheon Technologies is currently sporting a Zacks Rank of #4 (Sell).

Looking at its valuation, Raytheon Technologies is holding a Forward P/E ratio of 18.31. This represents a discount compared to its industry's average Forward P/E of 22.03.

Investors should also note that RTX has a PEG ratio of 1.39 right now. 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. Aerospace - Defense Equipment stocks are, on average, holding a PEG ratio of 3.4 based on yesterday's closing prices.

The Aerospace - Defense Equipment industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 224, which puts it in the bottom 13% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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