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RTX (RTX) Surpasses Market Returns: Some Facts Worth Knowing

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RTX (RTX - Free Report) closed the latest trading day at $124.91, indicating a +1% change from the previous session's end. This change outpaced the S&P 500's 0.9% gain on the day. Elsewhere, the Dow saw an upswing of 0.81%, while the tech-heavy Nasdaq appreciated by 1.22%.

The an aerospace and defense company's stock has climbed by 3.37% in the past month, exceeding the Aerospace sector's gain of 2.98% and the S&P 500's gain of 3.15%.

Investors will be eagerly watching for the performance of RTX in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 22, 2024. It is anticipated that the company will report an EPS of $1.33, marking a 6.4% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $19.95 billion, indicating a 5.27% growth compared to the corresponding quarter of the prior year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.45 per share and a revenue of $79.63 billion, indicating changes of +7.71% and +7.02%, respectively, from the former year.

Investors should also note any recent changes to analyst estimates for RTX. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Currently, RTX is carrying a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that RTX has a Forward P/E ratio of 22.67 right now. This represents a premium compared to its industry's average Forward P/E of 21.39.

We can additionally observe that RTX currently boasts a PEG ratio of 2.18. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Aerospace - Defense stocks are, on average, holding a PEG ratio of 2.05 based on yesterday's closing prices.

The Aerospace - Defense industry is part of the Aerospace sector. With its current Zacks Industry Rank of 23, this industry ranks in the top 10% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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