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Raytheon Technologies (RTX) Gains But Lags Market: What You Should Know
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Raytheon Technologies (RTX - Free Report) closed at $98.72 in the latest trading session, marking a +1.32% move from the prior day. This move lagged the S&P 500's daily gain of 3.1%. Meanwhile, the Dow gained 2.18%, and the Nasdaq, a tech-heavy index, added 0.21%.
Prior to today's trading, shares of the an aerospace and defense company had gained 1.97% over the past month. This has lagged the Aerospace sector's gain of 2.52% and outpaced the S&P 500's gain of 1.66% in that time.
Investors will be hoping for strength from Raytheon Technologies as it approaches its next earnings release. In that report, analysts expect Raytheon Technologies to post earnings of $1.24 per share. This would mark year-over-year growth of 14.81%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.2 billion, up 6.76% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.76 per share and revenue of $67.18 billion. These totals would mark changes of +11.48% and +4.33%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Raytheon Technologies. These revisions help to show the ever-changing nature 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 remained stagnant within the past month. Raytheon Technologies currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Raytheon Technologies is holding a Forward P/E ratio of 20.47. Its industry sports an average Forward P/E of 22.57, so we one might conclude that Raytheon Technologies is trading at a discount comparatively.
Also, we should mention that RTX has a PEG ratio of 2.16. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Aerospace - Defense Equipment was holding an average PEG ratio of 2.63 at yesterday's closing price.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 151, which puts it in the bottom 41% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Raytheon Technologies (RTX) Gains But Lags Market: What You Should Know
Raytheon Technologies (RTX - Free Report) closed at $98.72 in the latest trading session, marking a +1.32% move from the prior day. This move lagged the S&P 500's daily gain of 3.1%. Meanwhile, the Dow gained 2.18%, and the Nasdaq, a tech-heavy index, added 0.21%.
Prior to today's trading, shares of the an aerospace and defense company had gained 1.97% over the past month. This has lagged the Aerospace sector's gain of 2.52% and outpaced the S&P 500's gain of 1.66% in that time.
Investors will be hoping for strength from Raytheon Technologies as it approaches its next earnings release. In that report, analysts expect Raytheon Technologies to post earnings of $1.24 per share. This would mark year-over-year growth of 14.81%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.2 billion, up 6.76% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.76 per share and revenue of $67.18 billion. These totals would mark changes of +11.48% and +4.33%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Raytheon Technologies. These revisions help to show the ever-changing nature 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 remained stagnant within the past month. Raytheon Technologies currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Raytheon Technologies is holding a Forward P/E ratio of 20.47. Its industry sports an average Forward P/E of 22.57, so we one might conclude that Raytheon Technologies is trading at a discount comparatively.
Also, we should mention that RTX has a PEG ratio of 2.16. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Aerospace - Defense Equipment was holding an average PEG ratio of 2.63 at yesterday's closing price.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 151, which puts it in the bottom 41% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.