Raytheon (RTN - Free Report) closed the most recent trading day at $174.50, moving -1.1% from the previous trading session. This move was narrower than the S&P 500's daily loss of 1.32%. Meanwhile, the Dow lost 1.41%, and the Nasdaq, a tech-heavy index, lost 1.51%.
Prior to today's trading, shares of the defense contractor had lost 0.34% over the past month. This has was narrower than the Aerospace sector's loss of 2.11% and the S&P 500's loss of 5.09% in that time.
Investors will be hoping for strength from RTN as it approaches its next earnings release. The company is expected to report EPS of $2.64, up 7.76% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $7.01 billion, up 5.74% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.61 per share and revenue of $28.77 billion. These totals would mark changes of +9.43% and +6.31%, 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 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.05% lower. RTN is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, RTN is holding a Forward P/E ratio of 15.19. This valuation marks a discount compared to its industry's average Forward P/E of 20.
It is also worth noting that RTN currently has a PEG ratio of 1.35. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Aerospace - Defense Equipment stocks are, on average, holding a PEG ratio of 2.24 based on yesterday's closing prices.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 48, which puts it in the top 19% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.