Raytheon Technologies (RTX) Stock Moves -0.5%: What You Should Know

Raytheon Technologies (RTX) closed the most recent trading day at $89.57, moving -0.5% from the previous trading session. This move was narrower than the S&P 500's daily loss of 1.94%. Meanwhile, the Dow lost 1.07%, and the Nasdaq, a tech-heavy index, lost 0.39%.

Heading into today, shares of the an aerospace and defense company had gained 5.89% over the past month, lagging the Aerospace sector's gain of 7.13% and outpacing the S&P 500's gain of 5.72% in that time.

Wall Street will be looking for positivity from Raytheon Technologies as it approaches its next earnings report date. This is expected to be January 25, 2022. The company is expected to report EPS of $1.01, up 36.49% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $17.22 billion, up 4.85% from the year-ago period.

Any recent changes to analyst estimates for Raytheon Technologies should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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 0.67% lower. Raytheon Technologies is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Raytheon Technologies currently has a Forward P/E ratio of 18.28. Its industry sports an average Forward P/E of 24.97, so we one might conclude that Raytheon Technologies is trading at a discount comparatively.

We can also see that RTX currently has a PEG ratio of 1.39. 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 2.97 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 228, which puts it in the bottom 11% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.