In the latest market close, RTX (RTX – Free Report) reached $134.69, with a +1.75% movement compared to the previous day. The stock’s change was less than the S&P 500’s daily gain of 1.77%. Meanwhile, the Dow experienced a rise of 1.42%, and the technology-dominated Nasdaq saw an increase of 2.28%.
Coming into today, shares of the an aerospace and defense company had gained 7.36% in the past month. In that same time, the Aerospace sector gained 4.65%, while the S&P 500 lost 5.73%.
Market participants will be closely following the financial results of RTX in its upcoming release. The company is predicted to post an EPS of $1.34, indicating constancy compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $19.76 billion, up 2.36% from the year-ago period.
RTX’s full-year Zacks Consensus Estimates are calling for earnings of $6.13 per share and revenue of $84.28 billion. These results would represent year-over-year changes of +6.98% and +4.39%, respectively.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for RTX. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts’ positivity towards the company’s business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we’ve formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.05% higher. Currently, RTX is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that RTX has a Forward P/E ratio of 21.6 right now. This indicates a premium in contrast to its industry’s Forward P/E of 21.24.
One should further note that RTX currently holds a PEG ratio of 2.23. 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 was holding an average PEG ratio of 1.81 at yesterday’s closing price.
The Aerospace – Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 136, which puts it in the bottom 46% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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