In the latest trading session, RTX (RTX) closed at $148.48, marking a +1.38% move from the previous day. The stock exceeded the S&P 500, which registered a loss of 0.84% for the day. At the same time, the Dow lost 0.7%, and the tech-heavy Nasdaq lost 0.91%.
Shares of the an aerospace and defense company witnessed a gain of 8.1% over the previous month, beating the performance of the Aerospace sector with its loss of 0%, and the S&P 500's gain of 1.44%.
The investment community will be paying close attention to the earnings performance of RTX in its upcoming release. The company is forecasted to report an EPS of $1.45, showcasing a 2.84% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $20.68 billion, reflecting a 4.84% rise from the equivalent quarter last year.
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 note any recent changes to analyst estimates for RTX. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 shifted 1.09% downward. Right now, RTX possesses a Zacks Rank of #4 (Sell).
Looking at valuation, RTX is presently trading at a Forward P/E ratio of 24.53. Its industry sports an average Forward P/E of 24.12, 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 2.65. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Aerospace - Defense stocks are, on average, holding a PEG ratio of 1.98 based on yesterday's closing prices.
The Aerospace - Defense industry is part of the Aerospace sector. This industry, currently bearing a Zacks Industry Rank of 69, finds itself in the top 29% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow RTX in the coming trading sessions, be sure to utilize Zacks.com.
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RTX Corporation (RTX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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