RTX (RTX) ended the recent trading session at $145.87, demonstrating a -1.76% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.03%. Meanwhile, the Dow lost 0.11%, and the Nasdaq, a tech-heavy index, added 0.13%.
Prior to today's trading, shares of the an aerospace and defense company had gained 8.24% outpaced the Aerospace sector's gain of 3.96% and the S&P 500's gain of 0.6%.
Market participants will be closely following the financial results of RTX in its upcoming release. The company's earnings per share (EPS) are projected to be $1.45, reflecting a 2.84% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $20.68 billion, showing a 4.84% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $5.97 per share and a revenue of $84.14 billion, demonstrating changes of +4.19% and +4.21%, respectively, from the preceding year.
Any recent changes to analyst estimates for RTX should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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, there's been a 1.09% fall in the Zacks Consensus EPS estimate. Currently, RTX is carrying a Zacks Rank of #4 (Sell).
Investors should also note RTX's current valuation metrics, including its Forward P/E ratio of 24.87. This expresses a premium compared to the average Forward P/E of 23.95 of its industry.
Meanwhile, RTX's PEG ratio is currently 2.68. 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. The Aerospace - Defense industry currently had an average PEG ratio of 2 as of yesterday's close.
The Aerospace - Defense industry is part of the Aerospace sector. With its current Zacks Industry Rank of 72, this industry ranks in the top 30% of all industries, numbering over 250.
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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