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RTX (RTX) Advances But Underperforms Market: Key Facts

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RTX (RTX - Free Report) closed the most recent trading day at $116.83, moving +0.17% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 1.1%. Elsewhere, the Dow gained 0.91%, while the tech-heavy Nasdaq added 1.35%.

Shares of the an aerospace and defense company have depreciated by 1.7% over the course of the past month, outperforming the Aerospace sector's loss of 4.17% and lagging the S&P 500's gain of 0.22%.

The investment community will be paying close attention to the earnings performance of RTX in its upcoming release. It is anticipated that the company will report an EPS of $1.36, marking a 5.43% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $20.57 billion, reflecting a 3.22% rise from the equivalent quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.56 per share and revenue of $79.75 billion, indicating changes of +9.88% and +7.18%, respectively, compared to the previous year.

Investors should also pay attention to any latest changes in analyst estimates for RTX. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

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 has moved 0.01% higher within the past month. 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 20.99. This valuation marks a premium compared to its industry's average Forward P/E of 19.19.

We can additionally observe that RTX currently boasts a PEG ratio of 2.06. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Aerospace - Defense industry held an average PEG ratio of 1.64.

The Aerospace - Defense industry is part of the Aerospace sector. This industry, currently bearing a Zacks Industry Rank of 150, finds itself in the bottom 41% echelons 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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