Back to top

Image: Bigstock

RTX (RTX) Suffers a Larger Drop Than the General Market: Key Insights

Read MoreHide Full Article

In the latest trading session, RTX (RTX - Free Report) closed at $82.69, marking a -0.53% move from the previous day. This move lagged the S&P 500's daily loss of 0.06%. On the other hand, the Dow registered a loss of 0.22%, and the technology-centric Nasdaq increased by 0.31%.

The the stock of an aerospace and defense company has risen by 0.89% in the past month, lagging the Aerospace sector's gain of 6.93% and the S&P 500's gain of 5.1%.

Analysts and investors alike will be keeping a close eye on the performance of RTX in its upcoming earnings disclosure. On that day, RTX is projected to report earnings of $1.25 per share, which would represent a year-over-year decline of 1.57%. Alongside, our most recent consensus estimate is anticipating revenue of $19.75 billion, indicating a 9.15% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $5 per share and revenue of $74.1 billion, which would represent changes of +4.6% and +10.47%, respectively, from the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections 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 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. RTX is holding a Zacks Rank of #3 (Hold) right now.

From a valuation perspective, RTX is currently exchanging hands at a Forward P/E ratio of 16.62. For comparison, its industry has an average Forward P/E of 17.46, which means RTX is trading at a discount to the group.

We can also see that RTX currently has a PEG ratio of 1.78. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Aerospace - Defense industry had an average PEG ratio of 1.94.

The Aerospace - Defense industry is part of the Aerospace sector. This industry, currently bearing a Zacks Industry Rank of 55, finds itself in the top 22% echelons 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.

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

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

RTX Corporation (RTX) - free report >>

Published in