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Raytheon Technologies (RTX) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Raytheon Technologies (RTX - Free Report) closed at $94.24, marking a -1.57% move from the previous day. This move lagged the S&P 500's daily loss of 0.76%. Elsewhere, the Dow lost 0.76%, while the tech-heavy Nasdaq lost 10.92%.
Heading into today, shares of the an aerospace and defense company had lost 4.03% over the past month, lagging the Aerospace sector's loss of 1.38% and the S&P 500's gain of 2.18% in that time.
Investors will be hoping for strength from Raytheon Technologies as it approaches its next earnings release, which is expected to be January 24, 2023. On that day, Raytheon Technologies is projected to report earnings of $1.24 per share, which would represent year-over-year growth of 14.81%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.2 billion, up 6.76% from the year-ago period.
Investors might also notice recent changes to analyst estimates for Raytheon Technologies. 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. 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.
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 has moved 0.64% lower. Raytheon Technologies currently has a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Raytheon Technologies has a Forward P/E ratio of 18.53 right now. This represents a discount compared to its industry's average Forward P/E of 20.57.
Investors should also note that RTX has a PEG ratio of 1.96 right now. 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. The Aerospace - Defense Equipment was holding an average PEG ratio of 2.8 at yesterday's closing price.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 166, putting it in the bottom 35% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.