RTX (RTX) closed at $158.37 in the latest trading session, marking a +1.62% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.47%. Meanwhile, the Dow gained 0.11%, and the Nasdaq, a tech-heavy index, added 0.94%.
Shares of the an aerospace and defense company witnessed a gain of 1.14% over the previous month, beating the performance of the Aerospace sector with its loss of 0.19%, and underperforming the S&P 500's gain of 2.32%.
Investors will be eagerly watching for the performance of RTX in its upcoming earnings disclosure. In that report, analysts expect RTX to post earnings of $1.41 per share. This would mark a year-over-year decline of 2.76%. Alongside, our most recent consensus estimate is anticipating revenue of $21.4 billion, indicating a 6.53% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.93 per share and a revenue of $85.69 billion, indicating changes of +3.49% and +6.13%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for RTX. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Right now, RTX possesses a Zacks Rank of #3 (Hold).
From a valuation perspective, RTX is currently exchanging hands at a Forward P/E ratio of 26.27. This signifies a premium in comparison to the average Forward P/E of 24.49 for its industry.
One should further note that RTX currently holds a PEG ratio of 2.87. 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. By the end of yesterday's trading, the Aerospace - Defense industry had an average PEG ratio of 2.07.
The Aerospace - Defense industry is part of the Aerospace sector. With its current Zacks Industry Rank of 91, this industry ranks in the top 37% of all industries, numbering over 250.
The Zacks Industry Rank is ordered 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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RTX Corporation (RTX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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