The most recent trading session ended with RTX (RTX) standing at $139.07, reflecting a +0.38% shift from the previouse trading day’s closing. This change outpaced the S&P 500’s 0.53% loss on the day. At the same time, the Dow lost 0.26%, and the tech-heavy Nasdaq lost 0.83%.
Shares of the an aerospace and defense company witnessed a gain of 8.67% over the previous month, trailing the performance of the Aerospace sector with its gain of 10.02% and outperforming the S&P 500’s gain of 5.17%.
Advertisement: High Yield Savings Offers
Market participants will be closely following the financial results of RTX in its upcoming release. The company’s upcoming EPS is projected at $1.45, signifying a 2.84% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $20.69 billion, showing a 4.9% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.97 per share and a revenue of $84.14 billion, signifying shifts of +4.19% and +4.21%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for RTX. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company’s business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 1.09% lower within the past month. RTX is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, RTX is holding a Forward P/E ratio of 23.21. This indicates a premium in contrast to its industry’s Forward P/E of 23.17.
We can additionally observe that RTX currently boasts a PEG ratio of 2.5. 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. Aerospace – Defense stocks are, on average, holding a PEG ratio of 1.93 based on yesterday’s closing prices.
The Aerospace – Defense industry is part of the Aerospace sector. This industry, currently bearing a Zacks Industry Rank of 51, finds itself in the top 21% echelons of all 250+ industries.