Raytheon Technologies (RTX) closed at $81.11 in the latest trading session, marking a -0.67% move from the prior day. This move was narrower than the S&P 500’s daily loss of 0.85%. Meanwhile, the Dow lost 0.17%, and the Nasdaq, a tech-heavy index, lost 0.05%.
Heading into today, shares of the an aerospace and defense company had lost 7.27% over the past month, lagging the Aerospace sector’s loss of 4.26% and the S&P 500’s loss of 0.97% in that time.
Raytheon Technologies will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.01, up 36.49% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $17.2 billion, up 4.78% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.20 per share and revenue of $64.59 billion, which would represent changes of +53.85% and +1.81%, respectively, from the prior year.
Any recent changes to analyst estimates for Raytheon Technologies should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
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 remained stagnant within the past month. Raytheon Technologies is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Raytheon Technologies is holding a Forward P/E ratio of 19.45. This represents a discount compared to its industry’s average Forward P/E of 21.85.
Investors should also note that RTX has a PEG ratio of 1.48 right now. 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 2.44 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 163, putting it in the bottom 36% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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