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RTX (RTX) Outperforms Broader Market: What You Need to Know

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In the latest trading session, RTX (RTX - Free Report) closed at $163.35, marking a +1.77% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.59%. Meanwhile, the Dow gained 0.65%, and the Nasdaq, a tech-heavy index, added 0.44%.

The an aerospace and defense company's shares have seen a decrease of 0.09% over the last month, not keeping up with the Aerospace sector's gain of 3.8% and the S&P 500's gain of 2.72%.

Market participants will be closely following the financial results of RTX in its upcoming release. In that report, analysts expect RTX to post earnings of $1.41 per share. This would mark a year-over-year decline of 2.76%. In the meantime, our current consensus estimate forecasts the revenue to be $21.4 billion, indicating a 6.53% growth compared to the corresponding quarter of the prior year.

RTX's full-year Zacks Consensus Estimates are calling for earnings of $5.93 per share and revenue of $85.69 billion. These results would represent year-over-year changes of +3.49% and +6.13%, respectively.

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 business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. RTX currently has a Zacks Rank of #4 (Sell).

Looking at its valuation, RTX is holding a Forward P/E ratio of 27.05. This represents a premium compared to its industry average Forward P/E of 25.08.

Also, we should mention that RTX has a PEG ratio of 2.96. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Aerospace - Defense industry stood at 2.16 at the close of the market yesterday.

The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 103, putting it in the top 42% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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