Raytheon (RTN) closed at $176 in the latest trading session, marking a +1.65% move from the prior day. This move outpaced the S&P 500's daily gain of 1.09%. Elsewhere, the Dow gained 0.97%, while the tech-heavy Nasdaq added 2.01%.
Coming into today, shares of the defense contractor had lost 16.78% in the past month. In that same time, the Aerospace sector lost 12.18%, while the S&P 500 lost 7.81%.
Wall Street will be looking for positivity from RTN as it approaches its next earnings report date. This is expected to be January 24, 2019. On that day, RTN is projected to report earnings of $2.82 per share, which would represent year-over-year growth of 38.92%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.48 billion, up 10.26% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.09 per share and revenue of $27.15 billion. These totals would mark changes of +32.41% and +7.12%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for RTN. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.87% higher. RTN is currently a Zacks Rank #2 (Buy).
In terms of valuation, RTN is currently trading at a Forward P/E ratio of 17.16. For comparison, its industry has an average Forward P/E of 19.08, which means RTN is trading at a discount to the group.
Investors should also note that RTN has a PEG ratio of 1.3 right now. 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. The Aerospace - Defense Equipment industry currently had an average PEG ratio of 2.2 as of yesterday's close.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 63, which puts it in the top 25% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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