In the latest trading session, Raytheon Technologies (RTX - Free Report) closed at $61.44, marking a -0.86% move from the previous day. This change lagged the S&P 500's 0.52% gain on the day. Elsewhere, the Dow gained 0.01%, while the tech-heavy Nasdaq added 1.21%.
Coming into today, shares of the an aerospace and defense company had lost 1.27% in the past month. In that same time, the Aerospace sector lost 2.53%, while the S&P 500 gained 0.49%.
RTX will be looking to display strength as it nears its next earnings release. On that day, RTX is projected to report earnings of $0.48 per share, which would represent a year-over-year decline of 78.28%. 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 $3.09 per share and revenue of $64.28 billion, which would represent changes of -62.59% and -16.57%, respectively, from the prior year.
Investors should also note any 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. RTX is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, RTX is currently trading at a Forward P/E ratio of 20.08. Its industry sports an average Forward P/E of 33, so we one might conclude that RTX is trading at a discount comparatively.
Also, we should mention that RTX has a PEG ratio of 1.67. 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. Aerospace - Defense Equipment stocks are, on average, holding a PEG ratio of 8.44 based on yesterday's closing prices.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 222, which puts it in the bottom 13% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.