Raytheon (RTN) Gains But Lags Market: What You Should Know
In the latest trading session, Raytheon (RTN) closed at $193.12, marking a +0.08% move from the previous day. This move lagged the S&P 500's daily gain of 0.72%. Elsewhere, the Dow gained 0.85%, while the tech-heavy Nasdaq added 1.06%.
Prior to today's trading, shares of the defense contractor had gained 5.1% over the past month. This has outpaced the Aerospace sector's gain of 2.87% and the S&P 500's gain of 2.25% in that time.
Investors will be hoping for strength from RTN as it approaches its next earnings release. The company is expected to report EPS of $2.86, up 27.11% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.22 billion, up 6.06% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.73 per share and revenue of $28.94 billion, which would represent changes of +10.56% and +6.94%, respectively, from the prior year.
Any recent changes to analyst estimates for RTN should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 0.16% higher. RTN is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, RTN is holding a Forward P/E ratio of 16.45. This valuation marks a discount compared to its industry's average Forward P/E of 22.91.
Investors should also note that RTN has a PEG ratio of 1.54 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 2.21 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 49, which puts it in the top 20% 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.
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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