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Raytheon Technologies (RTX) Gains But Lags Market: What You Should Know
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In the latest trading session, Raytheon Technologies (RTX - Free Report) closed at $96.24, marking a +1.51% move from the previous day. This change lagged the S&P 500's 1.84% gain on the day. At the same time, the Dow added 1.33%, and the tech-heavy Nasdaq gained 0.53%.
Coming into today, shares of the an aerospace and defense company had lost 3.02% in the past month. In that same time, the Aerospace sector lost 1.28%, while the S&P 500 lost 0.5%.
Raytheon Technologies will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.13, up 9.71% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.46 billion, up 3.68% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.77 per share and revenue of $68.09 billion. These totals would mark changes of +11.71% and +5.75%, respectively, from last year.
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.
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 remained stagnant within the past month. Raytheon Technologies is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Raytheon Technologies is currently trading at a Forward P/E ratio of 19.87. For comparison, its industry has an average Forward P/E of 21.9, which means Raytheon Technologies is trading at a discount to the group.
Also, we should mention that RTX has a PEG ratio of 1.89. 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 2.19 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 102, which puts it in the top 41% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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) Gains But Lags Market: What You Should Know
In the latest trading session, Raytheon Technologies (RTX - Free Report) closed at $96.24, marking a +1.51% move from the previous day. This change lagged the S&P 500's 1.84% gain on the day. At the same time, the Dow added 1.33%, and the tech-heavy Nasdaq gained 0.53%.
Coming into today, shares of the an aerospace and defense company had lost 3.02% in the past month. In that same time, the Aerospace sector lost 1.28%, while the S&P 500 lost 0.5%.
Raytheon Technologies will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.13, up 9.71% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.46 billion, up 3.68% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.77 per share and revenue of $68.09 billion. These totals would mark changes of +11.71% and +5.75%, respectively, from last year.
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.
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 remained stagnant within the past month. Raytheon Technologies is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Raytheon Technologies is currently trading at a Forward P/E ratio of 19.87. For comparison, its industry has an average Forward P/E of 21.9, which means Raytheon Technologies is trading at a discount to the group.
Also, we should mention that RTX has a PEG ratio of 1.89. 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 2.19 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 102, which puts it in the top 41% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.