In the latest close session, RTX (RTX) was up +1.62% at $174.72. This change outpaced the S&P 500's 0.68% gain on the day. Elsewhere, the Dow gained 1.05%, while the tech-heavy Nasdaq added 0.33%.
Prior to today's trading, shares of the an aerospace and defense company had lost 4.07% lagged the Aerospace sector's loss of 1.81% and the S&P 500's gain of 1.8%.
Investors will be eagerly watching for the performance of RTX in its upcoming earnings disclosure. On that day, RTX is projected to report earnings of $1.44 per share, which would represent a year-over-year decline of 6.49%. Meanwhile, the latest consensus estimate predicts the revenue to be $22.67 billion, indicating a 4.85% increase compared to the same quarter of the previous 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.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for RTX. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
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. The Zacks Consensus EPS estimate has moved 0.09% higher within the past month. RTX currently has a Zacks Rank of #3 (Hold).
In terms of valuation, RTX is presently being traded at a Forward P/E ratio of 27.81. For comparison, its industry has an average Forward P/E of 26.09, which means RTX is trading at a premium to the group.
Also, we should mention that RTX has a PEG ratio of 2.69. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. RTX's industry had an average PEG ratio of 1.94 as of yesterday's close.
The Aerospace - Defense industry is part of the Aerospace sector. With its current Zacks Industry Rank of 67, this industry ranks in the top 28% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our 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.
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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