Raytheon (RTN - Free Report) closed the most recent trading day at $226.48, moving -0.95% from the previous trading session. This change lagged the S&P 500's 0.29% loss on the day. At the same time, the Dow lost 0.46%, and the tech-heavy Nasdaq lost 0.27%.
Coming into today, shares of the defense contractor had gained 4.79% in the past month. In that same time, the Aerospace sector gained 4.01%, while the S&P 500 gained 4.56%.
RTN will be looking to display strength as it nears its next earnings release. On that day, RTN is projected to report earnings of $3.11 per share, which would represent year-over-year growth of 6.14%. Our most recent consensus estimate is calling for quarterly revenue of $8.03 billion, up 9.07% from the year-ago period.
It is also important to note the recent changes to analyst estimates for RTN. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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. The Zacks Consensus EPS estimate has moved 0.07% higher within the past month. RTN is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that RTN has a Forward P/E ratio of 17.77 right now. This valuation marks a discount compared to its industry's average Forward P/E of 20.59.
Meanwhile, RTN's PEG ratio is currently 1.66. 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. The Aerospace - Defense Equipment was holding an average PEG ratio of 2.29 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 185, which puts it in the bottom 28% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.