Raytheon (RTN - Free Report) closed at $175.27 in the latest trading session, marking a +0.97% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.82%. Meanwhile, the Dow gained 0.79%, and the Nasdaq, a tech-heavy index, added 0.79%.
Heading into today, shares of the defense contractor had lost 4.01% over the past month, lagging the Aerospace sector's gain of 4.54% and the S&P 500's gain of 3.94% in that time.
Investors will be hoping for strength from RTN as it approaches its next earnings release, which is expected to be January 24, 2019. The company is expected to report EPS of $2.88, up 41.87% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $7.50 billion, up 10.6% from the year-ago period.
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. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 remained stagnant. RTN currently has a Zacks Rank of #2 (Buy).
Digging into valuation, RTN currently has a Forward P/E ratio of 17.18. For comparison, its industry has an average Forward P/E of 19.02, which means RTN is trading at a discount to the group.
It is also worth noting that RTN currently has a PEG ratio of 1.24. 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 2.37 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 52, putting it in the top 20% 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.