RTX (RTX) closed at $203.33 in the latest trading session, marking a -1.32% move from the prior day. The stock's change was less than the S&P 500's daily gain of 0.25%. Elsewhere, the Dow gained 0.1%, while the tech-heavy Nasdaq added 0.47%.
The an aerospace and defense company's stock has climbed by 3% in the past month, exceeding the Aerospace sector's loss of 1.45% and the S&P 500's loss of 1.88%.
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 $1.51, showcasing a 2.72% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $21.42 billion, indicating a 5.48% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.81 per share and a revenue of $93.36 billion, representing changes of +8.27% and +5.37%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for RTX. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, RTX boasts a Zacks Rank of #3 (Hold).
In terms of valuation, RTX is presently being traded at a Forward P/E ratio of 30.26. For comparison, its industry has an average Forward P/E of 24.25, which means RTX is trading at a premium to the group.
Also, we should mention that RTX has a PEG ratio of 2.98. 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. As of the close of trade yesterday, the Aerospace - Defense industry held an average PEG ratio of 2.07.
The Aerospace - Defense industry is part of the Aerospace sector. Currently, this industry holds a Zacks Industry Rank of 144, positioning it in the bottom 42% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
