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Raytheon Technologies (RTX) Outpaces Stock Market Gains: What You Should Know

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Raytheon Technologies (RTX - Free Report) closed at $84.90 in the latest trading session, marking a +0.99% move from the prior day. This move outpaced the S&P 500's daily gain of 0.62%. Meanwhile, the Dow gained 0.55%, and the Nasdaq, a tech-heavy index, lost 0.03%.

Heading into today, shares of the an aerospace and defense company had lost 3.58% over the past month, lagging the Aerospace sector's loss of 2.78% and the S&P 500's gain of 0.39% in that time.

Investors will be hoping for strength from Raytheon Technologies as it approaches its next earnings release. The company is expected to report EPS of $1.01, up 36.49% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $17.22 billion, up 4.85% from the year-ago period.

RTX's full-year Zacks Consensus Estimates are calling for earnings of $4.19 per share and revenue of $64.6 billion. These results would represent year-over-year changes of +53.48% and +1.83%, respectively.

Investors should also note any recent changes to analyst estimates for Raytheon Technologies. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.

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 0.12% lower. Raytheon Technologies is currently a Zacks Rank #3 (Hold).

Investors should also note Raytheon Technologies's current valuation metrics, including its Forward P/E ratio of 20.05. This valuation marks a discount compared to its industry's average Forward P/E of 23.18.

It is also worth noting that RTX currently has a PEG ratio of 1.52. 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 3.24 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 199, which puts it in the bottom 22% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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