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Raytheon Technologies (RTX) Dips More Than Broader Markets: What You Should Know

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Raytheon Technologies (RTX - Free Report) closed at $69.66 in the latest trading session, marking a -0.73% move from the prior day. This change lagged the S&P 500's daily loss of 0.39%. Meanwhile, the Dow gained 0.12%, and the Nasdaq, a tech-heavy index, lost 0.1%.

Heading into today, shares of the an aerospace and defense company had lost 1.32% over the past month, lagging the Aerospace sector's gain of 1.45% and the S&P 500's gain of 4.06% in that time.

Investors will be hoping for strength from RTX as it approaches its next earnings release. On that day, RTX is projected to report earnings of $0.73 per share, which would represent a year-over-year decline of 62.37%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.24 billion, down 16.94% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.01 per share and revenue of $64.28 billion, which would represent changes of -63.56% and -16.56%, respectively, from the prior year.

Any recent changes to analyst estimates for RTX should also be noted by investors. 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.

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 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 #4 (Sell) right now.

Investors should also note RTX's current valuation metrics, including its Forward P/E ratio of 23.3. Its industry sports an average Forward P/E of 38.53, so we one might conclude that RTX is trading at a discount comparatively.

We can also see that RTX currently has a PEG ratio of 1.94. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. RTX's industry had an average PEG ratio of 10.18 as of yesterday's close.

The Aerospace - Defense Equipment industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 216, putting it in the bottom 16% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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