In the latest trading session, Raytheon closed at $167.61, marking a +0.78% move from the previous day. The stock lagged the S&P 500's daily gain of 0.85%. Meanwhile, the Dow gained 0.75%, and the Nasdaq, a tech-heavy index, added 1.29%.
Heading into today, shares of the defense contractor had gained 8.3% over the past month, lagging the Aerospace sector's gain of 17.21% and the S&P 500's gain of 12.44% in that time.
Wall Street will be looking for positivity from RTN as it approaches its next earnings report date. This is expected to be January 31, 2019. The company is expected to report EPS of $2.89, up 42.36% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $7.50 billion, up 10.6% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for RTN. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.48% lower. RTN currently has a Zacks Rank of #3 (Hold).
In terms of valuation, RTN is currently trading at a Forward P/E ratio of 14.22. For comparison, its industry has an average Forward P/E of 18.71, which means RTN is trading at a discount to the group.
Meanwhile, RTN's PEG ratio is currently 1.03. 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 industry currently had an average PEG ratio of 1.98 as of yesterday's close.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 85, putting it in the top 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Raytheon (RTN) Gains But Lags Market: What You Should Know
In the latest trading session, Raytheon closed at $167.61, marking a +0.78% move from the previous day. The stock lagged the S&P 500's daily gain of 0.85%. Meanwhile, the Dow gained 0.75%, and the Nasdaq, a tech-heavy index, added 1.29%.
Heading into today, shares of the defense contractor had gained 8.3% over the past month, lagging the Aerospace sector's gain of 17.21% and the S&P 500's gain of 12.44% in that time.
Wall Street will be looking for positivity from RTN as it approaches its next earnings report date. This is expected to be January 31, 2019. The company is expected to report EPS of $2.89, up 42.36% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $7.50 billion, up 10.6% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for RTN. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.48% lower. RTN currently has a Zacks Rank of #3 (Hold).
In terms of valuation, RTN is currently trading at a Forward P/E ratio of 14.22. For comparison, its industry has an average Forward P/E of 18.71, which means RTN is trading at a discount to the group.
Meanwhile, RTN's PEG ratio is currently 1.03. 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 industry currently had an average PEG ratio of 1.98 as of yesterday's close.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 85, putting it in the top 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.