In the latest trading session, Raytheon Technologies (RTX - Free Report) closed at $60.86, marking a -1.84% move from the previous day. This change was narrower than the S&P 500's 3.51% loss on the day. Elsewhere, the Dow lost 2.78%, while the tech-heavy Nasdaq lost 4.96%.
Coming into today, shares of the an aerospace and defense company had gained 3.28% in the past month. In that same time, the Aerospace sector gained 7.94%, while the S&P 500 gained 9.58%.
Wall Street will be looking for positivity from RTX as it approaches its next earnings report date. In that report, analysts expect RTX to post earnings of $0.46 per share. This would mark a year-over-year decline of 79.19%. Our most recent consensus estimate is calling for quarterly revenue of $15.37 billion, down 21.16% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.10 per share and revenue of $64 billion, which would represent changes of -62.47% and -16.93%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for RTX. 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. 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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. RTX is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, RTX is holding a Forward P/E ratio of 20.03. For comparison, its industry has an average Forward P/E of 33.11, which means RTX is trading at a discount to the group.
Also, we should mention that RTX has a PEG ratio of 1.67. 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. The Aerospace - Defense Equipment industry currently had an average PEG ratio of 8.51 as of yesterday's close.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 217, putting it in the bottom 15% 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.