In the latest trading session, Raytheon (RTN - Free Report) closed at $201.01, marking a -1.49% move from the previous day. This change lagged the S&P 500's 0.26% gain on the day. At the same time, the Dow added 0.13%, and the tech-heavy Nasdaq gained 0.4%.
Heading into today, shares of the defense contractor had gained 13.88% over the past month, outpacing the Aerospace sector's gain of 7.4% and the S&P 500's gain of 3.92% in that time.
Investors will be hoping for strength from RTN as it approaches its next earnings release. In that report, analysts expect RTN to post earnings of $2.86 per share. This would mark year-over-year growth of 27.11%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.22 billion, up 6.06% from the year-ago period.
RTN's full-year Zacks Consensus Estimates are calling for earnings of $11.73 per share and revenue of $28.94 billion. These results would represent year-over-year changes of +10.56% and +6.94%, respectively.
It is also important to note the recent changes to analyst estimates for RTN. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. RTN is currently a Zacks Rank #3 (Hold).
In terms of valuation, RTN is currently trading at a Forward P/E ratio of 17.4. This represents a discount compared to its industry's average Forward P/E of 22.91.
Also, we should mention that RTN has a PEG ratio of 1.63. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Aerospace - Defense Equipment industry currently had an average PEG ratio of 2.27 as of yesterday's close.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 51, 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.