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RTX Corporation (RTX) Hit a 52 Week High, Can the Run Continue?
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Have you been paying attention to shares of RTX (RTX - Free Report) ? Shares have been on the move with the stock up 3.1% over the past month. The stock hit a new 52-week high of $133.09 in the previous session. RTX has gained 14.9% since the start of the year compared to the 2.4% move for the Zacks Aerospace sector and the 2.1% return for the Zacks Aerospace - Defense industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on January 28, 2025, RTX reported EPS of $1.54 versus consensus estimate of $1.37 while it beat the consensus revenue estimate by 5.19%.
For the current fiscal year, RTX is expected to post earnings of $6.13 per share on $84.28 billion in revenues. This represents a 6.98% change in EPS on a 4.39% change in revenues. For the next fiscal year, the company is expected to earn $6.84 per share on $89.06 billion in revenues. This represents a year-over-year change of 11.64% and 5.67%, respectively.
Valuation Metrics
RTX may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
RTX has a Value Score of B. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 21.7X current fiscal year EPS estimates, which is a premium to the peer industry average of 18X. On a trailing cash flow basis, the stock currently trades at 14.7X versus its peer group's average of 14.7X. Additionally, the stock has a PEG ratio of 2.24. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, RTX currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if RTX meets the list of requirements. Thus, it seems as though RTX shares could have a bit more room to run in the near term.
How Does RTX Stack Up to the Competition?
Shares of RTX have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is MTU Aero Engines AG (MTUAY - Free Report) . MTUAY has a Zacks Rank of # 1 (Strong Buy) and a Value Score of C, a Growth Score of A, and a Momentum Score of F.
Earnings were strong last quarter. MTU Aero Engines AG beat our consensus estimate by 5.88%, and for the current fiscal year, MTUAY is expected to post earnings of $8.69 per share on revenue of $9.01 billion.
Shares of MTU Aero Engines AG have gained 1.5% over the past month, and currently trade at a forward P/E of 19.98X and a P/CF of 18.65X.
The Aerospace - Defense industry is in the top 34% of all the industries we have in our universe, so it looks like there are some nice tailwinds for RTX and MTUAY, even beyond their own solid fundamental situation.
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RTX Corporation (RTX) Hit a 52 Week High, Can the Run Continue?
Have you been paying attention to shares of RTX (RTX - Free Report) ? Shares have been on the move with the stock up 3.1% over the past month. The stock hit a new 52-week high of $133.09 in the previous session. RTX has gained 14.9% since the start of the year compared to the 2.4% move for the Zacks Aerospace sector and the 2.1% return for the Zacks Aerospace - Defense industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on January 28, 2025, RTX reported EPS of $1.54 versus consensus estimate of $1.37 while it beat the consensus revenue estimate by 5.19%.
For the current fiscal year, RTX is expected to post earnings of $6.13 per share on $84.28 billion in revenues. This represents a 6.98% change in EPS on a 4.39% change in revenues. For the next fiscal year, the company is expected to earn $6.84 per share on $89.06 billion in revenues. This represents a year-over-year change of 11.64% and 5.67%, respectively.
Valuation Metrics
RTX may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
RTX has a Value Score of B. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 21.7X current fiscal year EPS estimates, which is a premium to the peer industry average of 18X. On a trailing cash flow basis, the stock currently trades at 14.7X versus its peer group's average of 14.7X. Additionally, the stock has a PEG ratio of 2.24. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, RTX currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if RTX meets the list of requirements. Thus, it seems as though RTX shares could have a bit more room to run in the near term.
How Does RTX Stack Up to the Competition?
Shares of RTX have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is MTU Aero Engines AG (MTUAY - Free Report) . MTUAY has a Zacks Rank of # 1 (Strong Buy) and a Value Score of C, a Growth Score of A, and a Momentum Score of F.
Earnings were strong last quarter. MTU Aero Engines AG beat our consensus estimate by 5.88%, and for the current fiscal year, MTUAY is expected to post earnings of $8.69 per share on revenue of $9.01 billion.
Shares of MTU Aero Engines AG have gained 1.5% over the past month, and currently trade at a forward P/E of 19.98X and a P/CF of 18.65X.
The Aerospace - Defense industry is in the top 34% of all the industries we have in our universe, so it looks like there are some nice tailwinds for RTX and MTUAY, even beyond their own solid fundamental situation.