Yahoo Finance Raytheon Technologies (RTX) Dips More Than Broader Markets: What You Should Know
Raytheon Technologies (RTX) closed the most recent trading day at $92.14, moving -0.73% from the previous trading session. This move lagged the S&P 500's daily loss of 0.61%. Elsewhere, the Dow lost 0.41%, while the tech-heavy Nasdaq added 10.45%.
Prior to today's trading, shares of the an aerospace and defense company had lost 6.12% over the past month. This has lagged the Aerospace sector's loss of 3.89% and the S&P 500's gain of 1.05% in that time.
Raytheon Technologies will be looking to display strength as it nears its next earnings release. In that report, analysts expect Raytheon Technologies to post earnings of $1.19 per share. This would mark year-over-year growth of 2.59%. Our most recent consensus estimate is calling for quarterly revenue of $17.64 billion, up 8.11% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.05 per share and revenue of $72.64 billion, which would represent changes of +5.65% and +8.3%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Raytheon Technologies. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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 holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Raytheon Technologies has a Forward P/E ratio of 18.38 right now. For comparison, its industry has an average Forward P/E of 24.14, which means Raytheon Technologies is trading at a discount to the group.
Meanwhile, RTX's PEG ratio is currently 2.23. 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 2.01 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 72, putting it in the top 29% 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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Raytheon Technologies Corporation (RTX) : Free Stock Analysis Report
