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Raytheon Technologies (RTX) Gains As Market Dips: What You Should Know

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Raytheon Technologies (RTX - Free Report) closed at $84.16 in the latest trading session, marking a +0.18% move from the prior day. This move outpaced the S&P 500's daily loss of 0.75%. Elsewhere, the Dow lost 0.32%, while the tech-heavy Nasdaq lost 0.07%.

Prior to today's trading, shares of the an aerospace and defense company had lost 4.58% over the past month. This has was narrower than the Aerospace sector's loss of 5.75% and the S&P 500's loss of 8.4% in that time.

Raytheon Technologies will be looking to display strength as it nears its next earnings release, which is expected to be October 25, 2022. The company is expected to report EPS of $1.12, down 11.11% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $17.11 billion, up 5.56% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.66 per share and revenue of $67.13 billion, which would represent changes of +9.13% and +4.26%, respectively, from the prior year.

Any recent changes to analyst estimates for Raytheon Technologies should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 has moved 0.57% lower within the past month. Raytheon Technologies currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Raytheon Technologies is holding a Forward P/E ratio of 18.04. This represents a discount compared to its industry's average Forward P/E of 24.29.

We can also see that RTX currently has a PEG ratio of 1.73. 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 1.96 at yesterday's closing price.

The Aerospace - Defense Equipment industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 166, which puts it in the bottom 35% 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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