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Raytheon Technologies (RTX) Dips More Than Broader Markets: What You Should Know
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Raytheon Technologies (RTX - Free Report) closed at $99.07 in the latest trading session, marking a -1.75% move from the prior day. This change lagged the S&P 500's daily loss of 1.57%. At the same time, the Dow lost 1.56%, and the tech-heavy Nasdaq lost 0.09%.
Heading into today, shares of the an aerospace and defense company had gained 0.09% over the past month, lagging the Aerospace sector's gain of 0.95% and the S&P 500's gain of 5.37% in that time.
Investors will be hoping for strength from Raytheon Technologies as it approaches its next earnings release. On that day, Raytheon Technologies is projected to report earnings of $1.03 per share, which would represent year-over-year growth of 14.44%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.07 billion, up 5.37% from the year-ago period.
RTX's full-year Zacks Consensus Estimates are calling for earnings of $4.79 per share and revenue of $68.79 billion. These results would represent year-over-year changes of +12.18% and +6.84%, respectively.
It is also important to note the recent changes to analyst estimates for Raytheon Technologies. Recent revisions tend to reflect the latest near-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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Raytheon Technologies currently has a Zacks Rank of #4 (Sell).
In terms of valuation, Raytheon Technologies is currently trading at a Forward P/E ratio of 21.07. For comparison, its industry has an average Forward P/E of 24.57, which means Raytheon Technologies is trading at a discount to the group.
Meanwhile, RTX's PEG ratio is currently 2.07. 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. RTX's industry had an average PEG ratio of 2.85 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 170, which puts it in the bottom 34% 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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Raytheon Technologies (RTX) Dips More Than Broader Markets: What You Should Know
Raytheon Technologies (RTX - Free Report) closed at $99.07 in the latest trading session, marking a -1.75% move from the prior day. This change lagged the S&P 500's daily loss of 1.57%. At the same time, the Dow lost 1.56%, and the tech-heavy Nasdaq lost 0.09%.
Heading into today, shares of the an aerospace and defense company had gained 0.09% over the past month, lagging the Aerospace sector's gain of 0.95% and the S&P 500's gain of 5.37% in that time.
Investors will be hoping for strength from Raytheon Technologies as it approaches its next earnings release. On that day, Raytheon Technologies is projected to report earnings of $1.03 per share, which would represent year-over-year growth of 14.44%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.07 billion, up 5.37% from the year-ago period.
RTX's full-year Zacks Consensus Estimates are calling for earnings of $4.79 per share and revenue of $68.79 billion. These results would represent year-over-year changes of +12.18% and +6.84%, respectively.
It is also important to note the recent changes to analyst estimates for Raytheon Technologies. Recent revisions tend to reflect the latest near-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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Raytheon Technologies currently has a Zacks Rank of #4 (Sell).
In terms of valuation, Raytheon Technologies is currently trading at a Forward P/E ratio of 21.07. For comparison, its industry has an average Forward P/E of 24.57, which means Raytheon Technologies is trading at a discount to the group.
Meanwhile, RTX's PEG ratio is currently 2.07. 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. RTX's industry had an average PEG ratio of 2.85 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 170, which puts it in the bottom 34% 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.