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RTX (RTX) Ascends But Remains Behind Market: Some Facts to Note
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The latest trading session saw RTX (RTX - Free Report) ending at $73.35, denoting a +0.49% adjustment from its last day's close. The stock lagged the S&P 500's daily gain of 0.52%. Meanwhile, the Dow experienced a rise of 0.4%, and the technology-dominated Nasdaq saw an increase of 0.58%.
Heading into today, shares of the an aerospace and defense company had lost 5.08% over the past month, lagging the Aerospace sector's loss of 1.83% and the S&P 500's loss of 2.61% in that time.
The upcoming earnings release of RTX will be of great interest to investors. The company's earnings report is expected on October 24, 2023. On that day, RTX is projected to report earnings of $1.19 per share, which would represent a year-over-year decline of 1.65%. At the same time, our most recent consensus estimate is projecting a revenue of $18.76 billion, reflecting a 10.68% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5 per share and revenue of $73.75 billion. These totals would mark changes of +4.6% and +9.96%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for RTX. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.16% higher. At present, RTX boasts a Zacks Rank of #3 (Hold).
Looking at valuation, RTX is presently trading at a Forward P/E ratio of 14.59. This represents a discount compared to its industry's average Forward P/E of 15.77.
One should further note that RTX currently holds a PEG ratio of 1.55. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Aerospace - Defense stocks are, on average, holding a PEG ratio of 1.8 based on yesterday's closing prices.
The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 102, putting it in the top 41% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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RTX (RTX) Ascends But Remains Behind Market: Some Facts to Note
The latest trading session saw RTX (RTX - Free Report) ending at $73.35, denoting a +0.49% adjustment from its last day's close. The stock lagged the S&P 500's daily gain of 0.52%. Meanwhile, the Dow experienced a rise of 0.4%, and the technology-dominated Nasdaq saw an increase of 0.58%.
Heading into today, shares of the an aerospace and defense company had lost 5.08% over the past month, lagging the Aerospace sector's loss of 1.83% and the S&P 500's loss of 2.61% in that time.
The upcoming earnings release of RTX will be of great interest to investors. The company's earnings report is expected on October 24, 2023. On that day, RTX is projected to report earnings of $1.19 per share, which would represent a year-over-year decline of 1.65%. At the same time, our most recent consensus estimate is projecting a revenue of $18.76 billion, reflecting a 10.68% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5 per share and revenue of $73.75 billion. These totals would mark changes of +4.6% and +9.96%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for RTX. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.16% higher. At present, RTX boasts a Zacks Rank of #3 (Hold).
Looking at valuation, RTX is presently trading at a Forward P/E ratio of 14.59. This represents a discount compared to its industry's average Forward P/E of 15.77.
One should further note that RTX currently holds a PEG ratio of 1.55. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Aerospace - Defense stocks are, on average, holding a PEG ratio of 1.8 based on yesterday's closing prices.
The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 102, putting it in the top 41% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.