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RTX (RTX) Exceeds Market Returns: Some Facts to Consider

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RTX (RTX - Free Report) closed at $168.80 in the latest trading session, marking a +1.33% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 0.37%. Elsewhere, the Dow lost 0.14%, while the tech-heavy Nasdaq added 0.71%.

Shares of the an aerospace and defense company have appreciated by 5.75% over the course of the past month, underperforming the Aerospace sector's gain of 6.12%, and outperforming the S&P 500's gain of 4.26%.

Analysts and investors alike will be keeping a close eye on the performance of RTX in its upcoming earnings disclosure. The company's earnings report is set to go public on October 21, 2025. 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.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.93 per share and a revenue of $85.69 billion, indicating changes of +3.49% and +6.13%, respectively, from the former year.

Any recent changes to analyst estimates for RTX should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. RTX is currently a Zacks Rank #3 (Hold).

With respect to valuation, RTX is currently being traded at a Forward P/E ratio of 28.08. Its industry sports an average Forward P/E of 26.06, so one might conclude that RTX is trading at a premium comparatively.

Meanwhile, RTX's PEG ratio is currently 3.07. 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 Aerospace - Defense was holding an average PEG ratio of 2.25 at yesterday's closing price.

The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 155, which puts it in the bottom 38% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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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