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Here's Why RTX (RTX) Fell More Than Broader Market
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RTX (RTX - Free Report) closed the most recent trading day at $72.55, moving -1.81% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 1.26%. Elsewhere, the Dow lost 0.86%, while the tech-heavy Nasdaq lost 1.54%.
Coming into today, shares of the an aerospace and defense company had gained 1.72% in the past month. In that same time, the Aerospace sector lost 0.53%, while the S&P 500 lost 3.67%.
The investment community will be closely monitoring the performance of RTX in its forthcoming earnings report. The company is scheduled to release its earnings on October 24, 2023. The company is expected to report EPS of $1.19, down 1.65% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $18.71 billion, indicating a 10.37% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.01 per share and revenue of $73.75 billion. These totals would mark changes of +4.81% and +9.96%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for RTX. Such recent modifications usually signify the changing landscape of 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. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.3% rise in the Zacks Consensus EPS estimate. RTX currently has a Zacks Rank of #3 (Hold).
Investors should also note RTX's current valuation metrics, including its Forward P/E ratio of 14.76. This indicates a discount in contrast to its industry's Forward P/E of 16.02.
Also, we should mention that RTX has a PEG ratio of 1.56. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Aerospace - Defense industry had an average PEG ratio of 1.78 as trading concluded yesterday.
The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 98, which puts it in the top 39% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Here's Why RTX (RTX) Fell More Than Broader Market
RTX (RTX - Free Report) closed the most recent trading day at $72.55, moving -1.81% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 1.26%. Elsewhere, the Dow lost 0.86%, while the tech-heavy Nasdaq lost 1.54%.
Coming into today, shares of the an aerospace and defense company had gained 1.72% in the past month. In that same time, the Aerospace sector lost 0.53%, while the S&P 500 lost 3.67%.
The investment community will be closely monitoring the performance of RTX in its forthcoming earnings report. The company is scheduled to release its earnings on October 24, 2023. The company is expected to report EPS of $1.19, down 1.65% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $18.71 billion, indicating a 10.37% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.01 per share and revenue of $73.75 billion. These totals would mark changes of +4.81% and +9.96%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for RTX. Such recent modifications usually signify the changing landscape of 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. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.3% rise in the Zacks Consensus EPS estimate. RTX currently has a Zacks Rank of #3 (Hold).
Investors should also note RTX's current valuation metrics, including its Forward P/E ratio of 14.76. This indicates a discount in contrast to its industry's Forward P/E of 16.02.
Also, we should mention that RTX has a PEG ratio of 1.56. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Aerospace - Defense industry had an average PEG ratio of 1.78 as trading concluded yesterday.
The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 98, which puts it in the top 39% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.