In the latest trading session, Raytheon (RTN - Free Report) closed at $172.28, marking a -1% move from the previous day. This move lagged the S&P 500's daily gain of 0.3%. At the same time, the Dow 0%, and the tech-heavy Nasdaq gained 0.92%.
Coming into today, shares of the defense contractor had lost 5.4% in the past month. In that same time, the Aerospace sector lost 8.62%, while the S&P 500 lost 4.06%.
Investors will be hoping for strength from RTN as it approaches its next earnings release, which is expected to be January 24, 2019. On that day, RTN is projected to report earnings of $2.88 per share, which would represent year-over-year growth of 41.87%. Meanwhile, our latest consensus estimate is calling for revenue of $7.50 billion, up 10.6% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.10 per share and revenue of $27.19 billion. These totals would mark changes of +32.55% and +7.27%, respectively, from last year.
Any recent changes to analyst estimates for RTN should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Within the past 30 days, our consensus EPS projection has moved 1.79% higher. RTN is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that RTN has a Forward P/E ratio of 17.05 right now. Its industry sports an average Forward P/E of 19.01, so we one might conclude that RTN is trading at a discount comparatively.
Investors should also note that RTN has a PEG ratio of 1.23 right now. 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 Equipment stocks are, on average, holding a PEG ratio of 2.23 based on yesterday's closing prices.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 61, putting it in the top 24% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.