RTX (RTX) closed the most recent trading day at $136.48, moving +1.25% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 0.01%. On the other hand, the Dow registered a gain of 0.13%, and the technology-centric Nasdaq decreased by 0.32%.
The the stock of an aerospace and defense company has risen by 5.8% in the past month, lagging the Aerospace sector's gain of 10.94% and the S&P 500's gain of 6.43%.
The investment community will be paying close attention to the earnings performance of RTX in its upcoming release. On that day, RTX is projected to report earnings of $1.45 per share, which would represent year-over-year growth of 2.84%. Meanwhile, our latest consensus estimate is calling for revenue of $20.69 billion, up 4.9% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.97 per share and a revenue of $84.14 billion, indicating changes of +4.19% and +4.21%, respectively, from the former year.
Investors should also pay attention to any latest changes in 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 company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.09% lower within the past month. RTX is currently a Zacks Rank #3 (Hold).
Looking at its valuation, RTX is holding a Forward P/E ratio of 22.58. This indicates a discount in contrast to its industry's Forward P/E of 22.65.
Investors should also note that RTX has a PEG ratio of 2.44 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Aerospace - Defense was holding an average PEG ratio of 1.91 at yesterday's closing price.
The Aerospace - Defense industry is part of the Aerospace sector. This industry, currently bearing a Zacks Industry Rank of 58, finds itself in the top 24% echelons of all 250+ industries.
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.
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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