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RTX (RTX) Gains But Lags Market: What You Should Know

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RTX (RTX - Free Report) closed the latest trading day at $85.47, indicating a +0.49% change from the previous session's end. The stock fell short of the S&P 500, which registered a gain of 0.88% for the day. Meanwhile, the Dow experienced a rise of 0.54%, and the technology-dominated Nasdaq saw an increase of 1.35%.

Coming into today, shares of the an aerospace and defense company had gained 4.18% in the past month. In that same time, the Aerospace sector lost 3.69%, while the S&P 500 gained 0.64%.

Market participants will be closely following the financial results of RTX in its upcoming release. The company plans to announce its earnings on January 23, 2024. The company's upcoming EPS is projected at $1.25, signifying a 1.57% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $19.75 billion, indicating a 9.17% growth compared to the corresponding quarter of the prior year.

Investors should also note any recent changes to analyst estimates for RTX. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.53% decrease. At present, RTX boasts a Zacks Rank of #4 (Sell).

Digging into valuation, RTX currently has a Forward P/E ratio of 15.82. Its industry sports an average Forward P/E of 16.58, so one might conclude that RTX is trading at a discount comparatively.

It is also worth noting that RTX currently has a PEG ratio of 1.69. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Aerospace - Defense industry currently had an average PEG ratio of 1.81 as of yesterday's close.

The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 98, putting it in the top 39% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow RTX in the coming trading sessions, be sure to utilize Zacks.com.


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