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RTX (RTX) Flat As Market Gains: What You Should Know

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In the latest trading session, RTX (RTX - Free Report) closed at $84.17, marking no change from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.04% for the day. Meanwhile, the Dow gained 0.14%, and the Nasdaq, a tech-heavy index, lost 0.03%.

The an aerospace and defense company's shares have seen an increase of 3.98% over the last month, not keeping up with the Aerospace sector's gain of 6.94% and the S&P 500's gain of 5.28%.

The upcoming earnings release of RTX will be of great interest to investors. It is anticipated that the company will report an EPS of $1.25, marking a 1.57% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $19.75 billion, indicating a 9.17% increase compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $5 per share and a revenue of $74.1 billion, signifying shifts of +4.6% and +10.47%, respectively, from the last year.

Investors should also take note of any recent adjustments to analyst estimates for RTX. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

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 0.03% higher. RTX currently has a Zacks Rank of #3 (Hold).

In the context of valuation, RTX is at present trading with a Forward P/E ratio of 16.82. For comparison, its industry has an average Forward P/E of 18.42, which means RTX is trading at a discount to the group.

One should further note that RTX currently holds a PEG ratio of 1.8. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected 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. This industry, currently bearing a Zacks Industry Rank of 56, finds itself in the top 23% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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