In the latest trading session, Raytheon (RTN - Free Report) closed at $179.97, marking a -1.19% move from the previous day. This change lagged the S&P 500's 0.3% gain on the day. Elsewhere, the Dow lost 0.38%, while the tech-heavy Nasdaq added 0.44%.
Coming into today, shares of the defense contractor had gained 2.42% in the past month. In that same time, the Aerospace sector gained 0.13%, while the S&P 500 gained 2.91%.
Wall Street will be looking for positivity from RTN as it approaches its next earnings report date. On that day, RTN is projected to report earnings of $2.50 per share, which would represent year-over-year growth of 13.64%. Meanwhile, our latest consensus estimate is calling for revenue of $6.55 billion, up 4.58% from the prior-year quarter.
RTN's full-year Zacks Consensus Estimates are calling for earnings of $11.59 per share and revenue of $28.82 billion. These results would represent year-over-year changes of +9.24% and +6.5%, respectively.
Investors might also notice recent changes to analyst estimates for RTN. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.06% lower within the past month. RTN currently has a Zacks Rank of #3 (Hold).
Investors should also note RTN's current valuation metrics, including its Forward P/E ratio of 15.72. This represents a discount compared to its industry's average Forward P/E of 19.13.
It is also worth noting that RTN currently has a PEG ratio of 1.39. 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 2.34 at yesterday's closing price.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 43, which puts it in the top 17% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow RTN in the coming trading sessions, be sure to utilize Zacks.com.