Raytheon (RTN - Free Report) closed at $165.13 in the latest trading session, marking a -1.81% move from the prior day. This change was narrower than the S&P 500's daily loss of 2.33%. Elsewhere, the Dow lost 2.24%, while the tech-heavy Nasdaq lost 3.05%.
Heading into today, shares of the defense contractor had lost 9.9% over the past month, lagging the Aerospace sector's loss of 7.31% and the S&P 500's loss of 1.93% in that time.
RTN will be looking to display strength as it nears its next earnings release, which is expected to be January 24, 2019. In that report, analysts expect RTN to post earnings of $2.88 per share. This would mark 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.
Investors might also notice recent changes to analyst estimates for RTN. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0% higher. RTN currently has a Zacks Rank of #2 (Buy).
Digging into valuation, RTN currently has a Forward P/E ratio of 16.65. This valuation marks a discount compared to its industry's average Forward P/E of 18.98.
We can also see that RTN currently has a PEG ratio of 1.2. 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. The Aerospace - Defense Equipment was holding an average PEG ratio of 2.17 at yesterday's closing price.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 50, putting it in the top 19% 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.