This story originally appeared on Zacks
Raytheon Technologies (RTX) closed at $91.86 in the latest trading session, marking a +0.27% move from the prior day. The stock outpaced the S&P 500’s daily loss of 0.11%.
Coming into today, shares of the an aerospace and defense company had gained 5.6% in the past month. In that same time, the Aerospace sector lost 1.28%, while the S&P 500 gained 4.61%.
Wall Street will be looking for positivity from RTX as it approaches its next earnings report date. This is expected to be October 26, 2021. On that day, RTX is projected to report earnings of $1.07 per share, which would represent year-over-year growth of 84.48%. Our most recent consensus estimate is calling for quarterly revenue of $16.49 billion, up 11.85% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.03 per share and revenue of $65.35 billion. These totals would mark changes of +47.62% and +3.01%, respectively, from last year.
Any recent changes to analyst estimates for RTX should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. 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. 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, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. RTX is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, RTX currently has a Forward P/E ratio of 22.73. This represents a discount compared to its industry’s average Forward P/E of 24.73.
Investors should also note that RTX has a PEG ratio of 1.73 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. RTX’s industry had an average PEG ratio of 2.78 as of yesterday’s close.
The Aerospace – Defense Equipment industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 191, which puts it in the bottom 25% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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