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Raytheon Technologies (RTX) Gains But Lags Market: What You Should Know
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In the latest trading session, Raytheon Technologies (RTX - Free Report) closed at $88.54, marking a +1.49% move from the previous day. This move lagged the S&P 500's daily gain of 2.37%. Meanwhile, the Dow gained 2.47%, and the Nasdaq, a tech-heavy index, lost 0.07%.
Coming into today, shares of the an aerospace and defense company had gained 4.54% in the past month. In that same time, the Aerospace sector gained 0.84%, while the S&P 500 lost 4.82%.
Wall Street will be looking for positivity from Raytheon Technologies as it approaches its next earnings report date. This is expected to be October 25, 2022. In that report, analysts expect Raytheon Technologies to post earnings of $1.11 per share. This would mark a year-over-year decline of 11.9%. Meanwhile, our latest consensus estimate is calling for revenue of $17 billion, up 4.87% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.65 per share and revenue of $66.84 billion, which would represent changes of +8.9% and +3.82%, respectively, from the prior year.
Any recent changes to analyst estimates for Raytheon Technologies should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. Within the past 30 days, our consensus EPS projection has moved 1.27% lower. Raytheon Technologies currently has a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Raytheon Technologies has a Forward P/E ratio of 18.77 right now. For comparison, its industry has an average Forward P/E of 25.36, which means Raytheon Technologies is trading at a discount to the group.
Meanwhile, RTX's PEG ratio is currently 1.8. 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. RTX's industry had an average PEG ratio of 2.12 as of yesterday's close.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 183, which puts it in the bottom 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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Raytheon Technologies (RTX) Gains But Lags Market: What You Should Know
In the latest trading session, Raytheon Technologies (RTX - Free Report) closed at $88.54, marking a +1.49% move from the previous day. This move lagged the S&P 500's daily gain of 2.37%. Meanwhile, the Dow gained 2.47%, and the Nasdaq, a tech-heavy index, lost 0.07%.
Coming into today, shares of the an aerospace and defense company had gained 4.54% in the past month. In that same time, the Aerospace sector gained 0.84%, while the S&P 500 lost 4.82%.
Wall Street will be looking for positivity from Raytheon Technologies as it approaches its next earnings report date. This is expected to be October 25, 2022. In that report, analysts expect Raytheon Technologies to post earnings of $1.11 per share. This would mark a year-over-year decline of 11.9%. Meanwhile, our latest consensus estimate is calling for revenue of $17 billion, up 4.87% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.65 per share and revenue of $66.84 billion, which would represent changes of +8.9% and +3.82%, respectively, from the prior year.
Any recent changes to analyst estimates for Raytheon Technologies should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. Within the past 30 days, our consensus EPS projection has moved 1.27% lower. Raytheon Technologies currently has a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Raytheon Technologies has a Forward P/E ratio of 18.77 right now. For comparison, its industry has an average Forward P/E of 25.36, which means Raytheon Technologies is trading at a discount to the group.
Meanwhile, RTX's PEG ratio is currently 1.8. 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. RTX's industry had an average PEG ratio of 2.12 as of yesterday's close.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 183, which puts it in the bottom 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.