In the latest trading session, RTX (RTX) closed at $171.31, marking a +1.7% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.11%. Elsewhere, the Dow saw a downswing of 0.07%, while the tech-heavy Nasdaq appreciated by 0.22%.
The an aerospace and defense company's stock has dropped by 3.19% in the past month, exceeding the Aerospace sector's loss of 5.18% and lagging the S&P 500's gain of 0.08%.
Market participants will be closely following the financial results of RTX in its upcoming release. It is anticipated that the company will report an EPS of $1.44, marking a 6.49% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $22.67 billion, reflecting a 4.85% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.18 per share and a revenue of $87.04 billion, signifying shifts of +7.85% and +7.8%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for RTX. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.09% higher within the past month. RTX is currently a Zacks Rank #3 (Hold).
Investors should also note RTX's current valuation metrics, including its Forward P/E ratio of 27.25. This indicates a premium in contrast to its industry's Forward P/E of 26.69.
We can also see that RTX currently has a PEG ratio of 2.63. 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. As the market closed yesterday, the Aerospace - Defense industry was having an average PEG ratio of 1.95.
The Aerospace - Defense industry is part of the Aerospace sector. At present, this industry carries a Zacks Industry Rank of 71, placing it within the top 29% of over 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.
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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RTX Corporation (RTX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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