In the latest close session, RTX (RTX) was up +2.02% at $185.68. This change outpaced the S&P 500's 0.64% gain on the day. Elsewhere, the Dow saw an upswing of 0.47%, while the tech-heavy Nasdaq appreciated by 0.52%.
The an aerospace and defense company's stock has climbed by 7.27% in the past month, exceeding the Aerospace sector's gain of 5.12% and the S&P 500's gain of 3%.
The investment community will be closely monitoring the performance of RTX in its forthcoming earnings report. The company is expected to report EPS of $1.45, down 5.84% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $22.74 billion, indicating a 5.18% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.19 per share and a revenue of $87.11 billion, indicating changes of +8.03% and +7.89%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for RTX. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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.
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. Over the past month, there's been a 0.13% rise in the Zacks Consensus EPS estimate. RTX presently features a Zacks Rank of #3 (Hold).
Looking at valuation, RTX is presently trading at a Forward P/E ratio of 29.41. This expresses a premium compared to the average Forward P/E of 22.33 of its industry.
It's also important to note that RTX currently trades at a PEG ratio of 2.88. 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. As the market closed yesterday, the Aerospace - Defense industry was having an average PEG ratio of 2.09.
The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 99, which puts it in the top 41% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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