Raytheon closed the most recent trading day at $232.31, moving +1.26% from the previous trading session. This change outpaced the S&P 500's 0.84% gain on the day. Meanwhile, the Dow gained 0.92%, and the Nasdaq, a tech-heavy index, added 1.06%.
Coming into today, shares of the defense contractor had gained 7.12% in the past month. In that same time, the Aerospace sector gained 2.09%, while the S&P 500 gained 3.95%.
Investors will be hoping for strength from RTN as it approaches its next earnings release, which is expected to be January 30, 2020. On that day, RTN is projected to report earnings of $3.11 per share, which would represent year-over-year growth of 6.14%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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 revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. RTN is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, RTN currently has a Forward P/E ratio of 17.83. Its industry sports an average Forward P/E of 20.43, so we one might conclude that RTN is trading at a discount comparatively.
Also, we should mention that RTN has a PEG ratio of 1.67. 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. Aerospace - Defense Equipment stocks are, on average, holding a PEG ratio of 2.35 based on yesterday's closing prices.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 203, putting it in the bottom 21% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Image: Bigstock
Raytheon (RTN) Outpaces Stock Market Gains: What You Should Know
Raytheon closed the most recent trading day at $232.31, moving +1.26% from the previous trading session. This change outpaced the S&P 500's 0.84% gain on the day. Meanwhile, the Dow gained 0.92%, and the Nasdaq, a tech-heavy index, added 1.06%.
Coming into today, shares of the defense contractor had gained 7.12% in the past month. In that same time, the Aerospace sector gained 2.09%, while the S&P 500 gained 3.95%.
Investors will be hoping for strength from RTN as it approaches its next earnings release, which is expected to be January 30, 2020. On that day, RTN is projected to report earnings of $3.11 per share, which would represent year-over-year growth of 6.14%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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 revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. RTN is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, RTN currently has a Forward P/E ratio of 17.83. Its industry sports an average Forward P/E of 20.43, so we one might conclude that RTN is trading at a discount comparatively.
Also, we should mention that RTN has a PEG ratio of 1.67. 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. Aerospace - Defense Equipment stocks are, on average, holding a PEG ratio of 2.35 based on yesterday's closing prices.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 203, putting it in the bottom 21% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.