RTX (RTX) closed at $75.80 in the latest trading session, marking a +0.4% move from the prior day. The stock outpaced the S&P 500's daily loss of 1.22%. Elsewhere, the Dow lost 0.83%, while the tech-heavy Nasdaq lost 1.56%.
Heading into today, shares of the an aerospace and defense company had lost 11.33% over the past month, lagging the Aerospace sector's loss of 5.64% and the S&P 500's gain of 0.54% in that time.
Investors will be hoping for strength from RTX as it approaches its next earnings release. The company is expected to report EPS of $1.18, down 2.48% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $18.57 billion, up 9.58% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.99 per share and revenue of $73.69 billion, which would represent changes of +4.39% and +9.87%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for RTX. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.07% lower. RTX is currently a Zacks Rank #3 (Hold).
Digging into valuation, RTX currently has a Forward P/E ratio of 15.13. For comparison, its industry has an average Forward P/E of 15.68, which means RTX is trading at a discount to the group.
Meanwhile, RTX's PEG ratio is currently 1.92. 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. Aerospace - Defense stocks are, on average, holding a PEG ratio of 1.87 based on yesterday's closing prices.
The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 94, putting it in the top 38% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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