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Here's Why RTX (RTX) Fell More Than Broader Market
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RTX (RTX - Free Report) ended the recent trading session at $203.04, demonstrating a -2.04% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 1.52% for the day. At the same time, the Dow lost 1.56%, and the tech-heavy Nasdaq lost 1.78%.
Heading into today, shares of the an aerospace and defense company had gained 5.47% over the past month, outpacing the Aerospace sector's gain of 2.64% and the S&P 500's loss of 2.25%.
The investment community will be paying close attention to the earnings performance of RTX in its upcoming release. The company's upcoming EPS is projected at $1.51, signifying a 2.72% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $21.42 billion, indicating a 5.48% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.81 per share and revenue of $93.36 billion, which would represent changes of +8.27% and +5.37%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for RTX. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. RTX currently has a Zacks Rank of #3 (Hold).
Investors should also note RTX's current valuation metrics, including its Forward P/E ratio of 30.44. Its industry sports an average Forward P/E of 24.09, so one might conclude that RTX is trading at a premium comparatively.
Investors should also note that RTX has a PEG ratio of 3 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Aerospace - Defense stocks are, on average, holding a PEG ratio of 2.07 based on yesterday's closing prices.
The Aerospace - Defense industry is part of the Aerospace sector. This industry, currently bearing a Zacks Industry Rank of 81, finds itself in the top 34% echelons 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Here's Why RTX (RTX) Fell More Than Broader Market
RTX (RTX - Free Report) ended the recent trading session at $203.04, demonstrating a -2.04% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 1.52% for the day. At the same time, the Dow lost 1.56%, and the tech-heavy Nasdaq lost 1.78%.
Heading into today, shares of the an aerospace and defense company had gained 5.47% over the past month, outpacing the Aerospace sector's gain of 2.64% and the S&P 500's loss of 2.25%.
The investment community will be paying close attention to the earnings performance of RTX in its upcoming release. The company's upcoming EPS is projected at $1.51, signifying a 2.72% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $21.42 billion, indicating a 5.48% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.81 per share and revenue of $93.36 billion, which would represent changes of +8.27% and +5.37%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for RTX. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. RTX currently has a Zacks Rank of #3 (Hold).
Investors should also note RTX's current valuation metrics, including its Forward P/E ratio of 30.44. Its industry sports an average Forward P/E of 24.09, so one might conclude that RTX is trading at a premium comparatively.
Investors should also note that RTX has a PEG ratio of 3 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Aerospace - Defense stocks are, on average, holding a PEG ratio of 2.07 based on yesterday's closing prices.
The Aerospace - Defense industry is part of the Aerospace sector. This industry, currently bearing a Zacks Industry Rank of 81, finds itself in the top 34% echelons 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.