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Why the Market Dipped But RTX (RTX) Gained Today

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In the latest trading session, RTX (RTX - Free Report) closed at $80.95, marking a +0.95% move from the previous day. The stock exceeded the S&P 500, which registered a loss of 0.1% for the day. On the other hand, the Dow registered a gain of 0.04%, and the technology-centric Nasdaq decreased by 0.16%.

Shares of the an aerospace and defense company witnessed a loss of 1.47% over the previous month, trailing the performance of the Aerospace sector with its gain of 8.53% and the S&P 500's gain of 10.77%.

Analysts and investors alike will be keeping a close eye on the performance of RTX in its upcoming earnings disclosure. In that report, analysts expect RTX to post earnings of $1.25 per share. This would mark a year-over-year decline of 1.57%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $19.75 billion, up 9.15% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5 per share and a revenue of $74.1 billion, indicating changes of +4.6% and +10.47%, respectively, from the former year.

It's also important for investors to be aware of any recent modifications to analyst estimates for RTX. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. RTX is currently sporting a Zacks Rank of #3 (Hold).

Looking at valuation, RTX is presently trading at a Forward P/E ratio of 16.03. Its industry sports an average Forward P/E of 17.61, so one might conclude that RTX is trading at a discount comparatively.

We can additionally observe that RTX currently boasts a PEG ratio of 1.71. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Aerospace - Defense was holding an average PEG ratio of 1.91 at yesterday's closing price.

The Aerospace - Defense industry is part of the Aerospace sector. At present, this industry carries a Zacks Industry Rank of 52, placing it within the top 21% of over 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.

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