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RTX (RTX) Increases Yet Falls Behind Market: What Investors Need to Know

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The latest trading session saw RTX (RTX - Free Report) ending at $129.64, denoting a +0.73% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily gain of 1.12%. Meanwhile, the Dow gained 1.14%, and the Nasdaq, a tech-heavy index, added 1.46%.

The an aerospace and defense company's shares have seen an increase of 0.26% over the last month, surpassing the Aerospace sector's loss of 3.33% and the S&P 500's loss of 4.13%.

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 $1.34 per share. This would mark no growth from the year-ago period. Simultaneously, our latest consensus estimate expects the revenue to be $19.76 billion, showing a 2.36% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $6.13 per share and a revenue of $84.28 billion, demonstrating changes of +6.98% and +4.39%, respectively, from the preceding year.

Investors should also take note of any recent adjustments to analyst estimates for RTX. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, there's been a 0.05% rise in the Zacks Consensus EPS estimate. RTX currently has a Zacks Rank of #3 (Hold).

With respect to valuation, RTX is currently being traded at a Forward P/E ratio of 21. This represents a premium compared to its industry's average Forward P/E of 18.04.

It's also important to note that RTX currently trades at a PEG ratio of 2.17. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Aerospace - Defense stocks are, on average, holding a PEG ratio of 1.78 based on yesterday's closing prices.

The Aerospace - Defense industry is part of the Aerospace sector. At present, this industry carries a Zacks Industry Rank of 88, placing it within the top 36% 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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