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Raytheon Technologies (RTX) Outpaces Stock Market Gains: What You Should Know
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Raytheon Technologies (RTX - Free Report) closed at $99.76 in the latest trading session, marking a +1.61% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.49%. Meanwhile, the Dow gained 1.6%, and the Nasdaq, a tech-heavy index, added 0.06%.
Heading into today, shares of the an aerospace and defense company had gained 1.37% over the past month, outpacing the Aerospace sector's gain of 0.84% and the S&P 500's loss of 3.49% in that time.
Investors will be hoping for strength from Raytheon Technologies as it approaches its next earnings release. The company is expected to report EPS of $1.24, up 14.81% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue 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 should also note any recent changes to analyst estimates for Raytheon Technologies. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Raytheon Technologies is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Raytheon Technologies has a Forward P/E ratio of 20.63 right now. Its industry sports an average Forward P/E of 24.75, so we one might conclude that Raytheon Technologies is trading at a discount comparatively.
We can also see that RTX currently has a PEG ratio of 2.18. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Aerospace - Defense Equipment was holding an average PEG ratio of 2.39 at yesterday's closing price.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 167, putting it in the bottom 34% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Raytheon Technologies (RTX) Outpaces Stock Market Gains: What You Should Know
Raytheon Technologies (RTX - Free Report) closed at $99.76 in the latest trading session, marking a +1.61% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.49%. Meanwhile, the Dow gained 1.6%, and the Nasdaq, a tech-heavy index, added 0.06%.
Heading into today, shares of the an aerospace and defense company had gained 1.37% over the past month, outpacing the Aerospace sector's gain of 0.84% and the S&P 500's loss of 3.49% in that time.
Investors will be hoping for strength from Raytheon Technologies as it approaches its next earnings release. The company is expected to report EPS of $1.24, up 14.81% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue 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 should also note any recent changes to analyst estimates for Raytheon Technologies. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Raytheon Technologies is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Raytheon Technologies has a Forward P/E ratio of 20.63 right now. Its industry sports an average Forward P/E of 24.75, so we one might conclude that Raytheon Technologies is trading at a discount comparatively.
We can also see that RTX currently has a PEG ratio of 2.18. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Aerospace - Defense Equipment was holding an average PEG ratio of 2.39 at yesterday's closing price.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 167, putting it in the bottom 34% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.