In the latest trading session, RTX (RTX) closed at $178.66, marking a -1.29% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.3% for the day. Elsewhere, the Dow lost 0.16%, while the tech-heavy Nasdaq added 0.86%.
Coming into today, shares of the an aerospace and defense company had gained 2.78% in the past month. In that same time, the Aerospace sector gained 5.67%, while the S&P 500 gained 1.92%.
The investment community will be closely monitoring the performance of RTX in its forthcoming earnings report. The company's upcoming EPS is projected at $1.66, signifying a 6.41% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $22.89 billion, up 6.07% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.91 per share and a revenue of $93.68 billion, representing changes of +9.86% and +5.73%, respectively, from the prior year.
Investors should also pay attention to any latest changes in 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. As of now, RTX holds a Zacks Rank of #3 (Hold).
From a valuation perspective, RTX is currently exchanging hands at a Forward P/E ratio of 26.2. This valuation marks a premium compared to its industry average Forward P/E of 22.6.
Investors should also note that RTX has a PEG ratio of 2.57 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Aerospace - Defense industry stood at 1.55 at the close of the market yesterday.
The Aerospace - Defense industry is part of the Aerospace sector. At present, this industry carries a Zacks Industry Rank of 94, placing it within the top 39% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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This article originally published on Zacks Investment Research (zacks.com).