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RTX (RTX) Stock Drops Despite Market Gains: Important Facts to Note

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In the latest trading session, RTX (RTX - Free Report) closed at $157.00, marking a -1.51% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.4%. Meanwhile, the Dow lost 0.04%, and the Nasdaq, a tech-heavy index, added 0.66%.

Shares of the an aerospace and defense company witnessed a gain of 0.52% over the previous month, trailing the performance of the Aerospace sector with its gain of 3.78%, and the S&P 500's gain of 1.02%.

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. The company is forecasted to report an EPS of $1.42, showcasing a 2.07% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $21.48 billion, up 6.93% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.94 per share and revenue of $85.76 billion, indicating changes of +3.66% and +6.22%, respectively, compared to the previous year.

It's also important for investors to be aware of any recent modifications to analyst estimates for RTX. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.12% higher. RTX is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that RTX has a Forward P/E ratio of 26.83 right now. This represents a premium compared to its industry average Forward P/E of 25.77.

We can additionally observe that RTX currently boasts a PEG ratio of 2.96. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Aerospace - Defense industry currently had an average PEG ratio of 2.25 as of yesterday's close.

The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 179, which puts it in the bottom 28% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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