RTX (RTX) closed the most recent trading day at $193.54, moving -1.67% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 1.14% for the day. Meanwhile, the Dow gained 0.61%, and the Nasdaq, a tech-heavy index, added 1.69%.
The stock of an aerospace and defense company has fallen by 10.67% in the past month, leading the Aerospace sector's loss of 14.23% and undershooting the S&P 500's loss of 2.85%.
Investors will be eagerly watching for the performance of RTX in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.75, indicating a 2.94% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $23.84 billion, indicating a 6.06% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.22 per share and revenue of $96.06 billion. These totals would mark changes of +14.79% and +8.41%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for RTX. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. RTX is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, RTX is holding a Forward P/E ratio of 27.09. This indicates a premium in contrast to its industry's Forward P/E of 24.25.
It is also worth noting that RTX currently has a PEG ratio of 2.52. 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 average PEG ratio for the Aerospace - Defense industry stood at 1.64 at the close of the market yesterday.
The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 154, putting it in the bottom 38% 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.
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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This article originally published on Zacks Investment Research (zacks.com).