In the latest trading session, RTX (RTX) closed at $127.07, marking a -1.06% move from the previous day. The stock outperformed the S&P 500, which registered a daily loss of 3.46%. At the same time, the Dow lost 2.5%, and the tech-heavy Nasdaq lost 4.31%.
Coming into today, shares of the an aerospace and defense company had gained 0.37% in the past month. In that same time, the Aerospace sector lost 1.6%, while the S&P 500 lost 5.27%.
Investors will be eagerly watching for the performance of RTX in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on April 22, 2025. The company is forecasted to report an EPS of $1.34, showcasing no movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $19.76 billion, showing a 2.36% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.13 per share and revenue of $84.28 billion, which would represent changes of +6.98% and +4.39%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for RTX. 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.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.2% higher. RTX currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, RTX is holding a Forward P/E ratio of 19.66. Its industry sports an average Forward P/E of 17.77, so one might conclude that RTX is trading at a premium comparatively.
It's also important to note that RTX currently trades at a PEG ratio of 2.03. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Aerospace - Defense industry had an average PEG ratio of 1.89.
The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 137, putting it in the bottom 45% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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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