Raytheon Technologies (RTX) Stock Sinks As Market Gains: What You Should Know

Raytheon Technologies (RTX) closed the most recent trading day at $97.52, moving -0.24% from the previous trading session. This change lagged the S&P 500's 1.17% gain on the day. Meanwhile, the Dow gained 0.8%, and the Nasdaq, a tech-heavy index, added 0.18%.

Prior to today's trading, shares of the an aerospace and defense company had gained 3.59% over the past month. This has lagged the Aerospace sector's gain of 3.63% and outpaced the S&P 500's gain of 0.88% in that time.

Wall Street will be looking for positivity from Raytheon Technologies as it approaches its next earnings report date. The company is expected to report EPS of $1.03, up 14.44% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $16.07 billion, up 5.37% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.79 per share and revenue of $68.79 billion, which would represent changes of +12.18% and +6.84%, respectively, from the prior year.

Any recent changes to analyst estimates for Raytheon Technologies should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Raytheon Technologies is currently a Zacks Rank #4 (Sell).

In terms of valuation, Raytheon Technologies is currently trading at a Forward P/E ratio of 20.42. Its industry sports an average Forward P/E of 23.57, so we one might conclude that Raytheon Technologies is trading at a discount comparatively.

It is also worth noting that RTX currently has a PEG ratio of 2. 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 Aerospace - Defense Equipment was holding an average PEG ratio of 2.64 at yesterday's closing price.

The Aerospace - Defense Equipment industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 169, putting it in the bottom 34% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.