In the latest trading session, Raytheon (RTN - Free Report) closed at $179.99, marking a -1.07% move from the previous day. This change was narrower than the S&P 500's daily loss of 1.9%. At the same time, the Dow lost 1.77%, and the tech-heavy Nasdaq lost 2.5%.
Prior to today's trading, shares of the defense contractor had lost 1.86% over the past month. This has was narrower than the Aerospace sector's loss of 5% and lagged the S&P 500's gain of 3.04% in that time.
Wall Street will be looking for positivity from RTN as it approaches its next earnings report date. In that report, analysts expect RTN to post earnings of $2.50 per share. This would mark 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.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.59 per share and revenue of $28.83 billion, which would represent changes of +9.24% and +6.55%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for RTN. These revisions help to show the ever-changing nature of 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 remained stagnant within the past month. RTN currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, RTN is holding a Forward P/E ratio of 15.7. Its industry sports an average Forward P/E of 18.34, so we one might conclude that RTN is trading at a discount comparatively.
We can also see that RTN currently has a PEG ratio of 1.38. 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. RTN's industry had an average PEG ratio of 2.43 as of yesterday's close.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 44, putting it in the top 18% 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.