In the latest trading session, Raytheon Technologies (RTX - Free Report) closed at $59.58, marking a +0.56% move from the previous day. This move lagged the S&P 500's daily gain of 2.02%. At the same time, the Dow added 1.6%, and the tech-heavy Nasdaq gained 2.71%.
Heading into today, shares of the an aerospace and defense company had lost 7.8% over the past month, lagging the Aerospace sector's loss of 1.44% and the S&P 500's loss of 0.39% in that time.
RTX will be looking to display strength as it nears its next earnings release. On that day, RTX is projected to report earnings of $0.46 per share, which would represent a year-over-year decline of 79.19%. Meanwhile, our latest consensus estimate is calling for revenue of $15.37 billion, down 21.16% from the prior-year quarter.
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.
Any recent changes to analyst estimates for RTX should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. RTX is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, RTX is currently trading at a Forward P/E ratio of 19.14. This represents a discount compared to its industry's average Forward P/E of 32.09.
Meanwhile, RTX's PEG ratio is currently 1.6. 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 8.29 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 217, which puts it in the bottom 15% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.